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What Fed cuts mean for mortgages

Monday, March 03 2008 by hyle   Read: 2122 time(s) [5 min. delay]


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By bingol on Mon Mar 10, 2008 22:14
  Banks give the 30-year fixed mortgages based on their long term inflation forecast. Cutting interest rates just means more inflation risk in the long run, .i.e. cutting short term interest rates will not give a better deal for those who want to refinance their mortgages. It may even have adverse effect.

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