Does lower prime rate effect fixed-rate mortgage rates?
How will the new lower prime rate effect (new) fixed rate mortgages? Will mortgage rates drop?
Answers:
If you have not closed(purchased) yet, you might know how to get a lower rate. If you have closed, you are locked. Maybe within the future you could refinance to a lower rate, if they go down significantly.
You have a contract for a fixed rate for x amount for 30 years, no that does not adjust if the Fed rate goes down.
No, mortgage rates are simply whatever rate a hill chooses to offer. For the most part the rate cut will help out banks make more money on their mortgage portfolio, and will give a hand businesses who have loans that are tied to the prime rate (which most are).
The rate cut CAN help consumers since credit card companies will go by on the rate decrease to their most credit-worthy borrowers. If you have discouraging credit then I'm guessing your rate will not budge.
I know from past experience though, that mortgage rates will not be artificial by this.
I assume you are talking about the bazaar rates for new mortgages. A change of the prime rate does not hold a direct affect on the current rate of mortgages. The prime rate ties in more closely to the short term bond souk, which is much more volitile than the long term market. Mortgage rates are tied closer to the long occupancy bond market, but there are other factor at work also, such as the current inflation rate (which helps our rates right now because it have been low), competition from lenders (who are being more wary with the increase in default loans), and the stock market (although also indirectly).
Any change that be going to occur due to the lowering of the rate had already happen as the rate change was anticipated and the open market had already adjusted for it. If it be expected to change and then it didn't, afterwards you might have seen some bond open market changes, but the mortgage rates always help yourself to days, even weeks, to "catch up" to the changes within the bond markets.
If you had locked surrounded by a rate already, it wouldn't matter anyway. If you were waiting to lock within a rate, hoping they may go down, then you might obtain a small downward bump in the next week or so, but next again, the market may have accounted for the silver already (like I said above) and the lowest rates may already be out there.
the mortgage rates have already dropped....they're at 6% par next to 1originatoin fee
also the 2nd mortgage rates will go down as okay as the credit cards, car loans, student loans, etc Source(s): http://carolinahomerates.com
No
No!! Fixed means fixed. Cannot be changed. Get the best possible fixed rate you can and stay beside it.
Related Questions:
About ING Direct Canada mortgage rates. Are the posted rates transferable?
I am interested in the 5 yr fixed term. It is at 5.24%. I talk to their call centre rep and he said that adjectives the rates on the website are 100% NOT negotiable. I just wanna know if...
Answers:
If you have not closed(purchased) yet, you might know how to get a lower rate. If you have closed, you are locked. Maybe within the future you could refinance to a lower rate, if they go down significantly.
You have a contract for a fixed rate for x amount for 30 years, no that does not adjust if the Fed rate goes down.
No, mortgage rates are simply whatever rate a hill chooses to offer. For the most part the rate cut will help out banks make more money on their mortgage portfolio, and will give a hand businesses who have loans that are tied to the prime rate (which most are).
The rate cut CAN help consumers since credit card companies will go by on the rate decrease to their most credit-worthy borrowers. If you have discouraging credit then I'm guessing your rate will not budge.
I know from past experience though, that mortgage rates will not be artificial by this.
I assume you are talking about the bazaar rates for new mortgages. A change of the prime rate does not hold a direct affect on the current rate of mortgages. The prime rate ties in more closely to the short term bond souk, which is much more volitile than the long term market. Mortgage rates are tied closer to the long occupancy bond market, but there are other factor at work also, such as the current inflation rate (which helps our rates right now because it have been low), competition from lenders (who are being more wary with the increase in default loans), and the stock market (although also indirectly).
Any change that be going to occur due to the lowering of the rate had already happen as the rate change was anticipated and the open market had already adjusted for it. If it be expected to change and then it didn't, afterwards you might have seen some bond open market changes, but the mortgage rates always help yourself to days, even weeks, to "catch up" to the changes within the bond markets.
If you had locked surrounded by a rate already, it wouldn't matter anyway. If you were waiting to lock within a rate, hoping they may go down, then you might obtain a small downward bump in the next week or so, but next again, the market may have accounted for the silver already (like I said above) and the lowest rates may already be out there.
the mortgage rates have already dropped....they're at 6% par next to 1originatoin fee
also the 2nd mortgage rates will go down as okay as the credit cards, car loans, student loans, etc Source(s): http://carolinahomerates.com
No
No!! Fixed means fixed. Cannot be changed. Get the best possible fixed rate you can and stay beside it.
Related Questions:
About ING Direct Canada mortgage rates. Are the posted rates transferable?
I am interested in the 5 yr fixed term. It is at 5.24%. I talk to their call centre rep and he said that adjectives the rates on the website are 100% NOT negotiable. I just wanna know if...