What gives with mortgages. The 30 year fixed mortgage is at about 6.5%. The fed discount rate is 5.25% Back when the fed lowered the discount rate to 1.0% the 30 year fixed was at 5.5%. There isn't a lot of margin between the 5.25% fed discount rate and the 30 year 6.5% rate. What gives how are mortgage staying so low?? Shouldn't we be at a 8.5% rate for a 30 year fixed.