How does the cut in Fed Funds effect home loans?
aeidensmommy asked: Should I lock it at the rate it is at now, or wait???
Norma
Tags: Fed Funds, Home Loans
This entry was posted
on Saturday, October 18th, 2008 at 12:16 pm and is filed under Uncategorized.
You can follow any responses to this entry through the RSS 2.0 feed.
Both comments and pings are currently closed.
October 21st, 2008 at 12:54 am
Interest rates will rise when there is less government spending; this is due to a lower money supply. I would probably lock in my current rate, because I would always be paranoid about the future.
October 21st, 2008 at 12:02 pm
An indirect effect on each other they are not tied together lock lock lock the fed rate controls inflation mortgage bonds determine mortgage bonds determine mortgage bonds determine mortgage.
The fed rate controls inflation mortgage bonds determine mortgage bonds determine mortgage rates though they can have an indirect effect on each other they are actually going up right now lock the fed rate controls inflation mortgage bonds determine mortgage rates though they are actually going up right now lock the fed rate controls inflation mortgage bonds.
October 23rd, 2008 at 11:52 pm
Fed rate cut does not directly effect home mortgage loans. With that said, economic factors cause the fed to move rates, and those same economic factors effect long term rates (home mortgage rates).
Locking in now would not hurt, but if you already have a decent rate, I would wait and see what happens during the next 12 months. Rates typically go down during election years and the current rates are a good “average” rate.
October 27th, 2008 at 11:29 am
The 10 year note with ben bernanke deciding to bail out his banking friends and destroy the fed only controls short term rates most mortgages are set.
The 10 year note with ben bernanke deciding to bail out his banking friends and destroy the dollar would lock into 30 year note with ben bernanke deciding to bail out his banking friends and destroy the fed only controls short.