Mortgage Rate FED Funds Rate Spread
8/10/07 6.59% 5.25% 1.34%
2/15/08 6.06% 3.00% 3.06%
Just like you had the Greenspan conundrum with rising FED Funds rate with long term borrowing costs not moving we now have the Bernanke conundrum with the opposite.
So the mortgage rate has dropped 50 bips. That's great but hardly earth shattering and why I think the 2nd half rebound everyone is expecting will be very disapointing.
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