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Non-Tech : Bill Wexler's Trading Cabana -- Ignore unavailable to you. Want to Upgrade?


To: JDN who wrote (2881)10/2/2007 10:27:46 AM
From: Travis_Bickle  Read Replies (1) | Respond to of 6370
 
I guess that's the bullish argument but I doubt the historically high inventory of empty homes is going to be worked off in the space of a few months, rate cut or no rate cut. All signs, including this morning's pending home sales report, point to increasing inventory, not decreasing inventory.

In a lot of bubble areas they have a good three year supply of empty homes. New condos are still going up at a frenzied pace.



To: JDN who wrote (2881)10/2/2007 2:17:35 PM
From: Minos  Respond to of 6370
 
How much does cutting the FF rate really impact traditional 30-year fixed rate mortgages? My impression is that these mortgage rates correlate more closely with the 10-year. With rising inflation and a falling dollar, the yield curve is steepening. FF rate cuts might help some ARMS but not necessarily 30-year fixed.