Portland Mortgage Broker

Everyone,

Here is a great article on CNBC’s home page right now. They actually got it right, in the sense that 30-year fixed mortgages benefit little, and in fact tend to worsen, during the FOMC’s tightening cycle. We’ve dropped 300 basis points now in the Fed Funds rate, but the 30-year fixed mortgage has actually trended higher. Here is the article:

http://www.cnbc.com/id/24405986

Greg McBride of Bankrate.com hits it on the head with his statement, “It’s a testament to the fact that the Fed does not have any direct influence on long-term interest rates that serve as a benchmark for fixed mortgage rates.” He goes on to explain that “the ultimate direction of mortgage rates is going to be governed by the outlook for the economy and inflation.”

This is what I’ve been saying all along. it’s refreshing to hear a voice of reason in the midst of all the airwave static about what really drives fixed mortgage rates. Way to go, Greg! (Not to mention, how can I argue with somebody who has such a great first name?)