Did Prosper Anticipate or React to the Fed Rate Cut?
Thursday, November 1st, 2007
When the Fed cuts interest rates people often expect mortgage rates to drop. However, this is rarely the case given that mortgage markets typically anticipate rather than react to moves by the Fed. On the flip side of the coin, the variable credit card and savings rate markets react sometime after the Fed moves. In fact, some variable credit cards have a 90-day window to make adjustments reflecting the rate cut.
So the question is: did the Prosper marketplace anticipate or react to the Fed rate cut?
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