By Admin on Jun 30, 2008 in Economics
Cala M asked:
I am doing a regression analysis for a finance class, and I want to look at variables that influence or relate to the 30-Year Conventional Mortgage Rate… like interest rates of T-Bills or something.
I am doing a regression analysis for a finance class, and I want to look at variables that influence or relate to the 30-Year Conventional Mortgage Rate… like interest rates of T-Bills or something.
I just need suggestions on variables that may affect mortgage rates. Thank you!
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10 year bonds should show the closest correlation. It is not cause and effect but they are influenced by the same fundamentals, inflation, expected inflation, fed funds rate and GDP growth rate.
meg | Jul 1, 2008 | Reply
well lots of things… the amount of debt the government holds, because that dictates how much interest the government will be paying out… social norms, the president, federal reserve bankers and society in the late 1990′s and early 21st century decided homeownership and cheap credit were the best way to lift up the econony – so rates were cut across the board…
those are my two.I think the second suggestion was the strongest reason for the sharp decline in mortgage and interest rates.
arch0049 | Jul 4, 2008 | Reply
For More information on Mortgage Rates :
praveen0201 | Jul 6, 2008 | Reply
Tthe Federal Reserve rate can cause fluctuations in mortgage rates. When the Feds drop the funds rate, the stock market tends to be bullish which means mortgage backed securities are sold to buy stock. The demand for mortgage backed securities is lessened causing an increase in mortgage rates.
nationw1de | Jul 7, 2008 | Reply