Quote:
Originally Posted by Rick Lee
In fact most ARM's you're talking about are tied to benchmarks that have almost nothing to do with what the Fed does. How many times must it be explained here how mortgage interest rates are determined? Greenspan doesn't decide them.
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It is true that the Fed doesn't directly determine mortgage rates, and in fact the Fed rate can go down and mortgage rates go up (and vice versa), depending on conditions and other variables.
But in general, mortgage rates *tend* to move with the Fed interest rate.