Why Interest Rates Change Daily:

Despite what some people believe, mortgage-backed securities (MBS’s) are the bonds that directly dictate fixed rate mortgage interest rate pricing. The supply and demand for MBS’s is the final determinant of how fixed rate pricing is set. Just like stocks, MBS’s trade throughout the day. Large volumes of buying and selling can cause extreme fluctuations [...]

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The Fed Cuts the Rate….Again!

A lot is made of Federal Reserve Rate Cuts nowadays. I still get questions about it occasionally, so I though I might address a couple of them. On January 30, 2008, the Fed dropped the rate 50 basis points (1/2%) in a move that was not unexpected, setting the federal funds overnight rate to 3%, [...]

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