Higher Rates with Rate Cuts

Interest rates: "The new conundrum when Alan Greenspan hiked short-term rates, long-term rates barely moved. Ben Bernanke is cutting interest rates but bond yields are rising." (Rates are going UP!)

To put that in perspective, bond yields rose more in one month while the Fed was cutting rates than they did during the two years that the Fed boosted rates by 4.25 percentage points.

Shopper look out the news is telling you that rates are being cut. But when you call you find rates higher today than where they were last July!

Good news or Bad news - I'm Thinkin' Johnny First Time Homebuyer is not going to like the 7% 30 yr fixed 100% loan. And remember the nasty Adjustable Rate Mortgage. . .the loan product that everyone is refinancing out of????? You know the villain of the Mortgage Products Mr. ARM he's back 5.125% on the 5/1 and 5.25% on the 7/1 ARM.

I'm just here to help others see inside this little section of the world we live in called Mortgages. That's all I'm sayin'!

sk