The interest rate cuts won't work because banks stand to gain more from ARMs

[live love laugh]

than from new home mortgages from lowered interest rates.

Rate cuts continue to produce little change in consumer interest rates. Interest rates are even growing at the same time as the Fed continues to make cuts.

It occurred to me hearing today's news of another quarter point rate cut that the market for new homes is pretty much tapped out while the market for maturing ARMs grows daily. As interest rates increase, banks stand to profit more from maturing ARMs. It's obvious to me that we won't be seeing any low interest rates anytime soon--or any recovery in this economy due to Fed rate cuts.