Will the interest rates fall back to where they were last week or wil they continue to rise?
Monday, 21. June 2010
Home mortgage rates and equity loans to be more exact. They seem to have gone up almost a full percent in the last week. I thought the fed res was supposed to lower the rate to boost the economy.
Ariel Says:
Unless you have a fixed-rate mortgage, the current mortgage interest rates are very important to deciding how much you should pay every month<!–therefore it is always a good idea to keep an eye on what the rates are doing. If interest rates should rise, so will your monthly payments and again, if interest rates were to fall, so would the amount you would have to pay.
http://mortgages-finance.awardspace.com/Mortgage-Rate-Compare.htm
Monthly repayments made on your mortgage and the amount that was borrowed, is determined by current mortgage interest rates. Different–>companies offer different interest rates so it is a good idea to shop around for the best deal before settling on one particular lender.
Real Estate Guy Says:
the fed rate is NOT tied to mortgage rates.
They may come down a bit, but . . . . If you like the rate today, lock in. As many can see, waiting cost them money.
TPMG Says:
If you want the best rates, you have to act. That means that you grab the rates when you see them and not worry about what will happen next week. Fence sitters always fall off and miss the opportunity. Two weeks ago I was telling people to lock rates and act fast before rates went up, many did not listen.
Fed rate cuts do not affect long term mortgage rates directly. In fact, they usually make them worse by weakening the dollar. Since long term mortgage rates are more directly linked to the bond market, the increased risk of inflation due to the rate cuts cause the mortgage rates to rise.
My suggestion is to take the rates you can get right now and not further risk them going any higher. One simple fact about interest rates is this: They can always go much higher than they can go lower.
unabletoplaytennis Says:
Banks need the higher rates to make back the money they lost in Subprime. I think this is the lowest rates one can get for mortgages.
This maybe the reason why refinancing is in high demand now. And maybe buyers are coming back in while rates are still low.