Comments on: Fed Cuts Rates by One Half Point http://www.lendingclarity.com/2007/09/18/fed-cuts-rates-by-one-half-point/ Home loans made easy Fri, 21 Nov 2008 15:45:29 +0000 http://wordpress.org/?v=2.3 By: Marc http://www.lendingclarity.com/2007/09/18/fed-cuts-rates-by-one-half-point/#comment-12987 Marc Thu, 04 Oct 2007 17:50:53 +0000 http://www.lendingclarity.com/2007/09/18/fed-cuts-rates-by-one-half-point/#comment-12987 Gulraj, as you probably know by now, the half point Fed cut was a surprise to the market...and not a good one. While the bond market expected, and had already priced in, a quarter point cut, the larger drop was viewed as potentially inflationary. Rates then rose. Since then, things have been fairly stable. Tomorrow's employment report is key to guessing the market's direction from here. Greenspan recently stated that he expects to see the 10 year Note over 8%. It's currently at 4.5%. If that happens, the 30 year fixed rate will rise. Don't wait too long! Gulraj, as you probably know by now, the half point Fed cut was a surprise to the market…and not a good one. While the bond market expected, and had already priced in, a quarter point cut, the larger drop was viewed as potentially inflationary. Rates then rose.

Since then, things have been fairly stable. Tomorrow’s employment report is key to guessing the market’s direction from here. Greenspan recently stated that he expects to see the 10 year Note over 8%. It’s currently at 4.5%. If that happens, the 30 year fixed rate will rise.

Don’t wait too long!

]]> By: Gulraj http://www.lendingclarity.com/2007/09/18/fed-cuts-rates-by-one-half-point/#comment-12919 Gulraj Fri, 21 Sep 2007 19:06:43 +0000 http://www.lendingclarity.com/2007/09/18/fed-cuts-rates-by-one-half-point/#comment-12919 Hello Marc, I am shopping for a loan at the moment, I wanted to inquire if the fed rate cut will have an influence on the 30 yr fixed rate mortgages or perhaps a trickle down effect. I am confused about moving forward or holding. I already have a few properties picked out and I am assuming they will be on the market as its the end of 3rd quarter and with the holiday season & end of the year coming up, I don't believe they will move. Thanks Hello Marc,

I am shopping for a loan at the moment, I wanted to inquire if the fed rate cut will have an influence on the 30 yr fixed rate mortgages or perhaps a trickle down effect. I am confused about moving forward or holding. I already have a few properties picked out and I am assuming they will be on the market as its the end of 3rd quarter and with the holiday season & end of the year coming up, I don’t believe they will move.

Thanks

]]> By: Marc Brinitzer http://www.lendingclarity.com/2007/09/18/fed-cuts-rates-by-one-half-point/#comment-12908 Marc Brinitzer Wed, 19 Sep 2007 16:03:46 +0000 http://www.lendingclarity.com/2007/09/18/fed-cuts-rates-by-one-half-point/#comment-12908 Hopefully, long term mortgage rates will stabilize or go a little lower. The yield curve is steepening, and that might help the 5/1 & 7/1 ARM rates fall. Those mortgage rates are usually lower, offering a solid alternative for those whose expected holds are shorter. They haven't been much help recently. Also, the lower rates will help folks with home equity 2nds and those whose 3/1, 5/1, 7/1 ARMs are due to reset. Hopefully, long term mortgage rates will stabilize or go a little lower. The yield curve is steepening, and that might help the 5/1 & 7/1 ARM rates fall. Those mortgage rates are usually lower, offering a solid alternative for those whose expected holds are shorter. They haven’t been much help recently.

Also, the lower rates will help folks with home equity 2nds and those whose 3/1, 5/1, 7/1 ARMs are due to reset.

]]> By: BakerBoy http://www.lendingclarity.com/2007/09/18/fed-cuts-rates-by-one-half-point/#comment-12905 BakerBoy Wed, 19 Sep 2007 02:42:38 +0000 http://www.lendingclarity.com/2007/09/18/fed-cuts-rates-by-one-half-point/#comment-12905 What will happen the rest of the year. I heard Greenspan saying the "happy" part of this credit cycle was over and that he saw the 10 year Note hitting 8%+. That clashes a bit with this euphoria. What will happen the rest of the year. I heard Greenspan saying the “happy” part of this credit cycle was over and that he saw the 10 year Note hitting 8%+.

That clashes a bit with this euphoria.

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