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2004, No. 21
Posted 2004-09-01

Can a Summer Hike Cause Surprise Fall for Mortgage Rates?

by Kristie M. Engemann and Michael T. Owyang

Despite the recent increase in the federal funds rate target, there was not an immediate increase in long-term rates and lower mortgage demand. Thus, it is incorrect to assume that monetary policy tightenings will always curtail housing in the short run.