Search SEARCH

Why do mortgages interest rates change?

I am confused. I know there are ARM's, and that lending companies sell their mortgages to others to collect payments and so that their books look good at the end of the year. I just don't understand a few things: 1 - if the Fed has cut interest rates, wouldn't that rate cut trickle down to the mortgage industry? If so, why would mortgage interest rates increase? 2 - Were people informed of the "ballooning" that was going to happen? 3 - Why did lending institutions issue mortgages at adujustable rates knowing that they were going to increase out of peoples budgets? Any explanation of what is happening would be appreciated. Thank you!

Asked By: Lisa M - 1/30/2008
Best Answer - Chosen by Asker
1 - if the Fed has cut interest rates, wouldn't that rate cut trickle down to the mortgage... More
Answered By: NetAdvisor - 1/30/2008
Additional Answers (2)
1. Sometimes fed rate cuts will lower market mortgage rates, but they are not directly linked. Other factors affect mortgage interest rates... More
Answered By: engineer50 - 1/30/2008
 
1. Depends on where people decide to put their money. The Fed rate cut is for short term money, not mortgages... More
Answered By: Lisa L - 1/30/2008
 
Sponsored results
Over 483 Local Jobs Now Hiring In Your Area. $18-$87/Hr - Apply Today!
Jobs.Quick-com
Up to $47/hr Part-Time Job Openings. Free Schedule, No Scam. Start Now
wahm.com/jobs
Drive Your Car - Make up to $600 Per Weekend. Work When You Want.
uber.com/Sign-Up-Now
Click. Search. Apply. Free!
www.JobDiagnosis.com

Other Career Questions

What is your current job? Why did you choose this job? What do you enjoy about your job? What do you dislike about your job? What would be your perfect job? Would you rather have this j...
3 answers - Asked By: drop pants not bombs!.♥ - 3/2/2010
Where are the jobs? Is productivity and globalization creating a permanent “recession” of jobs? My main issue is I am doing a paper for school and have no idea where to begin. I was hoping suggestions...
4 answers - Asked By: bayebd24【ツ】 - 11/21/2007
Hi ok im 19 and about to start college to do an acess course into a university. Ive been browsing through all the courses and im tottaly stuck! I thought politics but im scared ill end up with some r...
1 answers - Asked By: roseparkerly - 1/26/2009

Content is not owned or controlled by Monster. Any content concerns should be addressed with Yahoo!
Yahoo! Does not evaluate or guarantee the accuracy of any Yahoo! Answers content. Yahoo! Disclaimer.

Popular Articles

Best-Paying Work-from-Home Jobs Article Rating
It’s easier than ever to work from home. Of course, not every job is a mobile job, and some companies aren’t interested in having their employees work from home.
2013 Marketing Jobs Outlook Article Rating
The US may be facing another year of anemic hiring overall, but that won't be the case in the high-orbit world of multichannel, digital media marketing.
For Employers: Post Jobs | Search Resumes | Advertise
About Monster | Work for Monster | Advertise with Us | AdChoices | Partner with Us | Investor Relations | Social Media
Terms of Use | Privacy Center | Accessibility Center | Help | Security | Contact Us | Sitemap | Mobile
©2014 Monster - All Rights Reserved U.S. Patents No. 5,832,497; 7,599,930 B1; 7,827,125 and 7,836,060 MWW - Looking for Monster Cable? - V: 2014.1.40.24-306
eTrustLogo