What is going to start to the mortgage rates? will near be a federal cut again?
will the interest rates come down once again?
Answers:
Fed funds rate is a short term rate not directly related to mortgages. All these bail out plans being discussed are focusing on "juicing" the economy, that would enjoy an upward pressure on long term rates like mortgages. Also, the bank that made the bad loans will have to pony up some money within the bailout, including refinancing some of their "bad" loans at below market rates. That means the "good" borrowers are going to reimburse higher rates. I don't see mortgages getting much lower than they are now.
The Feds cut rates several times and mortgage rates in actual fact went up! The 2 are not really associated.
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Answers:
Fed funds rate is a short term rate not directly related to mortgages. All these bail out plans being discussed are focusing on "juicing" the economy, that would enjoy an upward pressure on long term rates like mortgages. Also, the bank that made the bad loans will have to pony up some money within the bailout, including refinancing some of their "bad" loans at below market rates. That means the "good" borrowers are going to reimburse higher rates. I don't see mortgages getting much lower than they are now.
The Feds cut rates several times and mortgage rates in actual fact went up! The 2 are not really associated.
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