(New York)

So the Fed is widely expected to cut interest rates this week, which has sent market yields tumbling over the last several weeks. However, guess what, mortgage rates were falling steeply well before this telegraphed cut. 30-year mortgage rates have fallen from just under 5% in November of last year to just 3.75% now. What is most interesting here, and most worrying, is that other consumer lending rates did not fall similarly. For instance, auto loan rates, variable credit card rates, and home equity line of credit rates have not changed nearly as much as mortgages, signaling something unique about the market.

FINSUM: We find this to be a sign of market weakness that was more driven by the economy itself than it was the Fed.