The Federal Funds rate's decline to 1% is unlikely to spur mortgage origination the way it did the last time it was at this level. "The risk appetite's not there, the credit's not flowing and also house prices are not going up, they're going down. The whole configuration [of the market] has changed," said Josh Feinman, chief economist at DB Advisors. Mr. Feinman, who works for Deutsche Bank's institutional asset management division, said this is in contrast to the market environment in 2003, when the Fed Funds rate last fell to 1% and originations boomed. The Fed Funds rate last fell below 1% in 1958.
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