The Morning Report
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We haven’t paid much attention to mortgage rates of late, a fact that is understandable given that the real action in the mortgage market has involved defaults on high-risk loans rather than incremental rate changes. But let’s check back in on the topic.
As a matter of fact, fixed rates are not a whole lot lower than they were when the Fed began cutting rates back in mid-2007.
Adjustable rate mortgage (ARM) rates have fallen a bit, but they are notably higher than they were when the Fed Funds Rate was hovering around 2 percent back in 2005.
In short, the Fed’s dramatic rate-slashing extravaganza hasn’t put much downward pressure on mortgage rates at all.
— RICH TOSCANO