Since 2004 the fed has raised the fed funds rate 3 full percentage points. The 30 yr fixed rate mortgages in 2003 averaged 5.8%, in 2004 averaged 5.8% and today the 30 yr fixed rate is 5.7%! No one seems to have a rational explanation of why the bond rates and mortgage rates haven't followed suit! Why the "conundrum"?! Does the bond market know something that no one else knows? Is china or some other foreign country buying treasuries hand over fist to keep the rates low? Or are the bond traders blind as a bat in the biggest bond bubble of the recent history?