It's now at 3%
Feds Dropped Interest Rate Another 1/2 Point
- Thread starter Ice Cap
- Start date
Just asw that..
Ya looks like the Feds are trying to jump start the economy again. Some people were thinking that it could have been a full % and Jim Cramer (if you know finances you know who he is) was saying that it should have been cut in half instead down to about 1.75% - 1.5% So we could be in for another cut here possilby.
The next month should be good for purchasing because of good rates and if anyone is looking at investing this is going to be a good time to jump in. With recent dropping prices and a rate cut putting more money into the stocks instead of bonds you should be seeing a increase in the stock market....even though that didnt happen today.
The next month should be good for purchasing because of good rates and if anyone is looking at investing this is going to be a good time to jump in. With recent dropping prices and a rate cut putting more money into the stocks instead of bonds you should be seeing a increase in the stock market....even though that didnt happen today.
This will hopefully help alot of americans, The downside is it makes the american dollar weaker & a great deal for foreign investors to buy up whats left of the american industry.
They say maybe another cut in march or april when the FED meets again, I am hopefull the economy will grow in leaps & bounds by then.
They say maybe another cut in march or april when the FED meets again, I am hopefull the economy will grow in leaps & bounds by then.
So, dumb question. Do it now, or wait until they meet again?
Adversity creates opportunity.
Depends what you are getting into.
Depends what you are getting into.
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Ollie
ACCOUNT CLOSED
Depends.
If they drop the interest rates again it will likely be by a half percent.
That won't make much of a difference in a house loan.
You should be able to find a 30 year fixed for 5% or under. That is a good interest rate.
The housing market is a buyers market right now. If you wait too long the market might start to recover and the prices will go up.
It would not make that big of a difference on 200K loan but it would for 1.5 for sure. When do they meet next March?
if they don't do something about predatory lending they will end up in the same damn situation...
My mortgage is locked at 6% currently, I have the feelers out now, if I can lock at 5% or below I will.
dont know about your area, but in our news every day there is a new mortgage company going down for fraud... seems like they are weeding out the bad ones around here anyways.
I am betting on late summer time seeing the housing come back strong. Im going to try and lock my rate at the end of February/or late march some time. These cuts will filter down to the housing market a little slower, but it is a buyers market, and im set ready to go (as soon as my sled sells!)
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Diesel99
Member
All this cutting of the feds fund rate is cause for worry, never in the last 20 years have they cut by this much so quickly the data shows the US economy slowing but not drastically.
This cutting is to help the banks not going bankrupt, if they had to value their assets to actual value and not on models they would all be insolvent, broke, bankrupt. That's how bad it is so lookout below, stocks will crash housing will go down and eventually loan rates will skyrocket due to risk.
The only thing keeping the US banking system going right now is the Fed's Term Auction Facility (TAF)
This cutting is to help the banks not going bankrupt, if they had to value their assets to actual value and not on models they would all be insolvent, broke, bankrupt. That's how bad it is so lookout below, stocks will crash housing will go down and eventually loan rates will skyrocket due to risk.
The only thing keeping the US banking system going right now is the Fed's Term Auction Facility (TAF)
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XC700116
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Yeah but for those of us not streatched to the absolute limits locking in on a nice 4.5% 30 yr is a no brainer if it does get there and I think it might by April or so. Looks like a good time to relocate and take a new position in the company to get them to pay closing costs. Hehe!
It will help house values slightly but I think since all the Sub-prime forclosures happened banks will still be licking their wounds and there's a lot less people looking to buy now since half the friggen population has no credit left.
I think a lot of it is an attempt to bail out the people with the crazy ARM loans (that haven't been forclosed on yet) and the banks that hold them. A refi at a decent 30 yr rate will help them all out of a jam. The banks are getting way backed up on forclosed properties and can't get rid of them since there's no one to sell to now that they all got forclosed on.
It will help house values slightly but I think since all the Sub-prime forclosures happened banks will still be licking their wounds and there's a lot less people looking to buy now since half the friggen population has no credit left.
I think a lot of it is an attempt to bail out the people with the crazy ARM loans (that haven't been forclosed on yet) and the banks that hold them. A refi at a decent 30 yr rate will help them all out of a jam. The banks are getting way backed up on forclosed properties and can't get rid of them since there's no one to sell to now that they all got forclosed on.
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Diesel99
Member
30 year fixed are set to the Bond market so I don't think rates will come down anytime soon. Check out http://www.bankrate.com/
30yr Fixed - 5.52 UP 27bp from last week
15yr Fixed - 5.01 UP 22bp from last week
5/1 ARM - 5.07 UP 19bp from last week
30yr FJum - 6.60 UP 19bp from last week
It's all about risk and home values are going down so I want more money out of you for my risk.
Would you lend your neighboor $300,000 on his house with $5,000 down?
Market are starting to price in risk on falling assets.
30yr Fixed - 5.52 UP 27bp from last week
15yr Fixed - 5.01 UP 22bp from last week
5/1 ARM - 5.07 UP 19bp from last week
30yr FJum - 6.60 UP 19bp from last week
It's all about risk and home values are going down so I want more money out of you for my risk.
Would you lend your neighboor $300,000 on his house with $5,000 down?
Market are starting to price in risk on falling assets.
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Traditionally When Interest rate's drop Housing prices go up.
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Diesel99
Member
You are right, it will take years to get to the bottom of this whole mess and even longer to climb out of it.
The whole housing collapse is very similar to Japans problems of the late 80's early 90's and they still are climbing out of it and they were a nation of savers at the time.
They are going to devalue the dollar so much that foreign holders are going to try and bail out, If I had any extra cash I think I would move it to Japanese yen or swiss francs. Probably lots of money to be made there in the nexrt year. Swampy
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