Freak/Chap mortgage rate?
- Thread starter Topspin
- Start date
Cancel 2016.2
The Almighty
yeah, they did dip down there then the averages trended back up to where the 30 was sitting at 5.45%. My guess is that the 5-5.25% is probably as low as the 30 will go.
5% is enough to entice prime borrowers into refinancing and will allow the lenders to try to capture wider spreads. This will help some of them stay afloat while they figure out what to do with the subprime mess. I would really like to know which 14 companies the FBI is investigating righ now.
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The Federal Funds rate is short term rates. Long term rates are based off bonds, inflation forecasts, value of the dollar, supply and demand of global money. I don't think the cut will do anything to affect the long term rates. In fact when the fed raised rates after their 1% experiment, long term rates continued to decline. The fed has little influence on long term rates especially in these days of globalization.
That's what i am thinking too.... though it may affect them a little, minimally
care
theMAJORITY
MAJORITYrules-sorry
I think your right. Home values though will probably drop until at least 2012 if we get romney in--any body else, and I predict home values will drop for years after that. We don't elect people that care about us or our money (accept they want it all). I don't think we have a national problem only--I think we have a global problem that can not change any time soon. as long as the shareholders are happy---nobody else in office cares.
theMAJORITY
MAJORITYrules-sorry
It can change on almost an hourly basis--from what I understand.
theMAJORITY
MAJORITYrules-sorry
not a direct correlation no. long term mortgages are based on Mortgage Backed Securities bonds. BUT if you look at the trend it does effect it:
If something is effected by something else--there is a corrolation. But looks can be decieving---like a higher Co2 level and a .5 deg change in the earths crust temp. there is no corrolation there IMO.
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theMAJORITY
MAJORITYrules-sorry
You seem "in the know" about how the economy works (if anybody really is). I feel this "irrespnsible" globalization is the primary factor why we may be in a resession now. many say the housing bubble is all internal--but I think other established countries that also ship their manufacuring (and other indsutries) to slave labor is causing a gloabal resession and loss of homes across the pond also.
I don't see this in the media--but this irresponsible globalization is a movement that the elite want. All we hear is the unfortunate vitims of globalization and their jobs can not come back. Myself--I call BS. We, and other countries eilte planned this, and really don't care about their own people IMO.
This thing of our companies jumping the border, putting our work force out of work in masive amounts is new, and I think traditional economic dynamics have changed and we may not have it all figured out (that is almost obvious to me right now). I think we blew it--and almost impossible to turn around for our people---because the elite own us and call the shots.
I am asking your opinion--do you think I am on the correct true track with this one?
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not a direct correlation no. long term mortgages are based on Mortgage Backed Securities bonds. BUT if you look at the trend it does effect it:
Depends how you interpert the numbers. If you look at the rise and fall of the late 70's and 80's you'll notice rates correspond but for differant reasons. The long term rates were high because there WAS inflation. The short terms rates were high also but those rates were high to RID inflation. As inflation declined so did long term rates. You look at todays situation we have increased inflation worries but they are lowering rates. If it pans out inflation stays in check it may help lower rates. Also with our subprime mess there is a chance other countries will not buy our Mortgages which could put pressure up on rates.
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