so what does the 1/2 point drop in rates mean?

[Vortex]

Will that be enough to lower interest rates we use to buy homes?

 

[dmc]

It will definately lower mortgage rates.. Thats what they're doing ... Trying to stop people defaulting on mortgages with adjustable rates..
This whole thing is rippling into the world economy and pissing people off...

 

[tjf67]

It will definately lower mortgage rates.. Thats what they're doing ... Trying to stop people defaulting on mortgages with adjustable rates..
This whole thing is rippling into the world economy and pissing people off...

CC Rates will Drop
It will definatley drop H.E. Rates.


Probably will effect mortage rates but not for sure.

 

[Vortex]

I know its a rate drop. sometimes the rates banks charge don't trickle down. I was hoping your view would be correct. Hoping this will help me sell my condo to be honest. The finance end is all math to me:razz:.

 

[GrilledSteezeSandwich]

In my area home prices continue to fall..as there are more sellers than buyers...Foreclosures are at an all-time high. I'm hoping home prices fall a little more so they're less if/when I buy a house. My plan is to wait longer to buy a house so I can put down a much larger down payment..living in an apartment is so much simpler..my heat, water, and garbage is included..and I don't have to worry about taxes, mowing, maintence, or shoveling.

 

[ctenidae]

10 year treasury is off something liek 0.001%, so that's good for mortgage rates. Not.
Mortgage rates have only been at or above the Fed target twice in the past 6 months, so effectively there's been a stealth .25 cut in place for a while. Now it's official.
Longer term effects, the dollar's going to go down faster than a two buck ho at a kneepad convention. Foreign reserves are probably going to cash in some dollar holdings, putting more pressure on.

There's a whole doomsday scenario, but I don't want to get into it right now. Bernake may have saved homeowners in teh short term by sacrificing them in the long run.

Don't mind me. I'm just pissed he blinked. I thought there was a good chance he'd hold steady until October. I can't believe he wimped out.

 

[tjf67]

I know its a rate drop. sometimes the rates banks charge don't trickle down. I was hoping your view would be correct. Hoping this will help me sell my condo to be honest. The finance end is all math to me:razz:.

Interest rates are lower 09/07 that they were 09/06 even before the cut.

 

[Vortex]

10 year treasury is off something liek 0.001%, so that's good for mortgage rates. Not.
Mortgage rates have only been at or above the Fed target twice in the past 6 months, so effectively there's been a stealth .25 cut in place for a while. Now it's official.
Longer term effects, the dollar's going to go down faster than a two buck ho at a kneepad convention. Foreign reserves are probably going to cash in some dollar holdings, putting more pressure on.

There's a whole doomsday scenario, but I don't want to get into it right now. Bernake may have saved homeowners in teh short term by sacrificing them in the long run.

Don't mind me. I'm just pissed he blinked. I thought there was a good chance he'd hold steady until October. I can't believe he wimped out.

...

I read your post before on this. You are over my head. sounds liek its short term good news. pm sent,

 

[GrilledSteezeSandwich]

Longer term effects, the dollar's going to go down faster than a two buck ho at a kneepad convention..

ahahahahahahaha...snap.. I miss the days when you could get $1.50-$1.60 Canadian for every dollar US..that was around 2000...now it's $1.03 Canadian for every dollar US...:angry: it takes the fun out of paying for hookers and blow with Canadian money.

 

[Vortex]

Interest rates are lower 09/07 that they were 09/06 even before the cut.

They are not low enough to move the market from my point of view. A seller.

 

[tjf67]

10 year treasury is off something liek 0.001%, so that's good for mortgage rates. Not.
Mortgage rates have only been at or above the Fed target twice in the past 6 months, so effectively there's been a stealth .25 cut in place for a while. Now it's official.
Longer term effects, the dollar's going to go down faster than a two buck ho at a kneepad convention. Foreign reserves are probably going to cash in some dollar holdings, putting more pressure on.

There's a whole doomsday scenario, but I don't want to get into it right now. Bernake may have saved homeowners in teh short term by sacrificing them in the long run.

Don't mind me. I'm just pissed he blinked. I thought there was a good chance he'd hold steady until October. I can't believe he wimped out.

Gloom and Doom. We are in pretty decent shape as an overall economy.

 

[dmc]

Hoping this will help me sell my condo to be honest.

Thats less about mortgage rates and more about buyers feeling comfortable and confident enough to invest in a second home. I guess if their adjustable drops or steadies maybe people will be more inclined to buy...

 

[tjf67]

They are not low enough to move the market from my point of view. A seller.

I don't think it is rates that stopped the market it is the prices. As long as you have it on the market at a fair price it will move.

 

[ctenidae]

Gloom and Doom. We are in pretty decent shape as an overall economy.

Looks that way, but I wouldn't be so sure.

 

[GrilledSteezeSandwich]

It doesn't matter about the economy of the whole country..it's how you're personally doing..

 

[JimG.]

In my area home prices continue to fall..as there are more sellers than buyers...Foreclosures are at an all-time high. I'm hoping home prices fall a little more so they're less if/when I buy a house. My plan is to wait longer to buy a house so I can put down a much larger down payment..living in an apartment is so much simpler..my heat, water, and garbage is included..and I don't have to worry about taxes, mowing, maintence, or shoveling.

Go for the bigger down payment.

Simple fact is, the less you borrow the better.

 

[JimG.]

Thats less about mortgage rates and more about buyers feeling comfortable and confident enough to invest in a second home. I guess if their adjustable drops or steadies maybe people will be more inclined to buy...

If they don't go into foreclosure first.

Those ARM's have been going up for months...alot of people are spooked. A steadying or minor decline in rates won't help that. Most folks will just feel they dodged a bullet.

Glad for my fixed rate.

 

[Vortex]

I could just drop the price and lose my invesmeent... I prefer to ride it a bit. Sure my goals are a bit lower, but patience and being prepared are things I looked at on the front side.

 

[JimG.]

I could just drop the price and lose my invesmeent... I prefer to ride it a bit. Sure my goals are a bit lower, but patience and being prepared are things I looked at on the front side.

I think the vacation home market will be less affected than the ARM market. I'm assuming many buyers are in financially sound shape and if they're looking to buy now they probably don't have these worries.

If you get a prospect's serious interest, a well timed but smaller price concession may be the ticket for you.

 

[Vortex]

Good advice Jim.