Well, we're just now seeing the reductions in mortgage rates. The mortgage rates are based on the ten-year rate and the Fed controls the overnight or the shorter rates.

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We think if the economy remains weak that we could see mortgage rates trail down and we think that we could see rates below seven percent into early next year.

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We're in this period where we're getting good data rates. I would say we're getting data rates that are like the data rates we got when we launched RealAudio in 1995.

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Right now we think that rates will stay low, that you'll be able to get a mortgage below seven percent and that's kicked off a refinance boom that's going to put more money in the pockets of consumers.

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The real challenge was to model all the interest rates simultaneously, so you could value something that depended not only on the three-month interest rate, but on other interest rates as well.

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Since 1994, unemployment rates are lower. Median household income is higher. A greater percentage of Americans are graduating from college. Home ownership rates are higher. And the violent crime rate has decreased.

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Well, rates would go up whether you deregulate or not, and of course, the rates that are going up right now on the electricity side are still within the regulated framework.

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Right now the long-term investors are telling us that they're not as concerned about inflation and so we're seeing these rates now move into the marketplace and out to the street - rates that individuals can get.

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When interest rates are high you want the average direction in which interest rates are moving to be downward; when interest rates are low you want the average direction to be upward.

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And so Fannie Mae produces very strong results for investors in - when interest rates are high and when interest rates are low, in recession and during booms.

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So, if falling crime rates coincide with the rise of violent video games and increasing violence on TV and at the cinema, should we conclude that media violence is causing the drop in crime rates?

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Well, I think the reality is that as you study - when President Kennedy cut marginal tax rates, when Ronald Reagan cut marginal tax rates, when President Bush imposed those tax cuts, they actually generated economic growth. They expanded the economy. They expand tax revenues.

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Well, the U.S. is running a current account deficit; we are creating lots of investment opportunities in the United States that exceed our own domestic savings rates, so the issue here is to encourage higher savings rates in the United States.

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We will not, on the altar of money, mortgage our conscience, mortgage our faith, mortgage our salvation.

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Ramble Tamble

Chorus:
Move,
Down the road
I go.
Chorus
Theres mud in the water,
Roach in the cellar,
Bugs in the sugar,
Mortgage on the home,
Mortgage on the home.
Theres garbage on the sidewalk,
Highways in the back yard,
Police on the corner,
Mortgage on the car,
Mortgage on the car.
Chorus
Theyre selling independence,
Actors in the white house,
Acid in digestion,
Mortgage on my life,
Mortgage on my life.
Chorus
Ramble tamble tamble
Ramble tamble tamble
Ramble tamble tamble

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They flooded liquidity in the marketplace but the mortgage rate is based much more on expectations of inflation. So if the average investor believes that there is inflation coming, they'll move that rate up.

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But the fact is, it's illegal for the Administration to spend North west taxpayers' money to develop this rate hike proposal, just so it can turn around and raise their energy rates.

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One is rated by others as he rates himself.

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We are all are equal, but some pay higher tax rates than others.

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Since 2000, we've seen base power rates rise by 50%.

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The government must do all it can to help reduce interest rates for business.

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