Mortgage Questions

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This 5 page paper answers questions set by the student. The question considers why mortgage lenders do not see significantly improved profits from their fixed-rate loans when interest rates decrease. The second part of the paper considers what to link, if any, exists between mortgage rates and long-term treasury rates. The first question looks at the secondary mortgage market, the levels of activity in the way in which it differs from other capital markets. The bibliography cites 5 sources.