What do Interest Rates and the Economy Have in Common? No, it isn't that they both suck. In fact, although I have tried to ban the term "economy" from my vocabulary, for fear of sounding like a "Debbie Downer" or a "Negative Nancy" instead of a "Jolly Jessica", I just can't. It won't go away! Mostly because, I suppose, it is an influential part of my business. Why is the economy so pertinent to realm of real estate? In general, mortgage rates do better when the economy is worse. Investors tend to get a little spooked, and take their money out of stocks and into more conservative investments, such as bonds or mortgage-backed securities when the economy is suffering. Today, given the state of our economy, the government also decided that lowering interest rates may be the best way to stim...
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