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In a somewhat cruel irony, cutting the rates has only worsened the housing situation, as long-term mortgage rates are headed up. As I understand it, the interest rate cuts lower the appeal of bonds and weakens the dollar, which causes long-term rates to rise. So now the homeowners looking to escape their ARM could be easily looking at 6.5% or more for a 30 year fixed.
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‘07 Mazda RX8
Past: 911T, 911SC, Carrera, 951s, 955, 996s, 987s, 986s, 997s, BMW 5x, C36, C63, XJR, S8, Maserati Coupe, GT500, etc
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