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Article: Fed cuts not lowering mortgage rates.(B)(Business)
- Article from:
- The Washington Times (Washington, DC)
- Article date:
- July 10, 2001
- Author:
CopyrightCOPYRIGHT 2001 News World Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Kristina Stefanova
Mortgage rates have not come down much, despite a string of interest-rate cuts by the Federal Reserve this year, much to consumers' surprise.
The Fed has lowered its target for overnight rates six times this year, most recently by a quarter-point in late June. But mortgage rates declined more modestly from 8.29 percent to a two-year low of 6.95 percent in March, and since then have inched back up to around 7.19 percent yesterday.
"There's a very common misconception among consumers that interest-rate cuts on behalf of the Fed translate into lower mortgage rates," said Greg McBride, a financial analyst with ...