If people are holding their breath waiting for a break in the mortgage rates, they are going to be turning blue.

IF the rates are cut, which the Feds have already said will not be significant (probably 1/4 point), is for the lenders, and not for the consumers.

With lenders facing RECORD forclosures and losses in the BILLIONS, they are not going to bank on recouping their money by underwriting new loans….they aren’t going to pass that savings along, they are going to pocket it to help them recover.

People don’t understand that the rate-cut is to keep foreclosures from blowing up in the 4th and 1st quarter 2008…they are already going to be bad, but they are trying to help people hang on for another year.

Fed rates and mortgage rates are 100% unrrelated.

The Fed rate is a short term bank loan rate. This does not directly affect Mortgage rates, but inflation does affect mortgage rates.