by John Hunter
Read the article: 30 year fixed Mortgage rates are not correlated with federal funds rates
As these charts show there is no consistent correlation between federal funds rate moves and the effect on 30 year fixed mortgage rates. It is not sensible to make decisions on when to lock in a 30 year mortgage rate based on beliefs about what the Federal Reserve will do to the federal funds rate (decisions on variable rate mortgages are a different matter).
Chart of 30 Year Fixed Mortgage Rates v. Fed Funds Rates for 1980-1989:
Chart of 30 Year Fixed Mortgage Rates v. Fed Funds Rates for 1990-1999:
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