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I'm waiting till they drop lower

Taking Notes Most every competent mortgage person will tell you...

When the feds change the rates they are responsible for (Fed Funds and Discount) it has little effect on the actual mortgage rates you and I get to pay.

So the Fed's decided to lower the Fed Funds Rate .25 bps and lower the Discount Rate .25 pbs.

Did Mortgage Rates go down?

Here's a short video with Greg McBride from BankRate explaining the disconnect.

http://www.cnbc.com/id/15840232?video=606963530

I have issues with BankRate in that they exist to sell advertising, much of the rates advertised there are deceptive at best. But Greg does know what he's talking about in reference to rates - I'll give him that.

So should you wait to refinance or purchase until the Feds lower even more?
I think you already know that answer.

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Posted by Mike Mueller on 12/11/2007 01:38 PM

Comments (7)

bankrate, feds, fomc, market conditions

Originally posted at: Mike Mueller, Social Media.ist: I'm waiting till they drop lower

This post has been included in California Information Contra Costa County, CA Information

7 Comments on I'm waiting till they drop lower

DEC

2007

Good video clip. The mortgage guy in our office sends out newsletters and every time they hammer in the fact that rates are inversely related to bond. If bonds go up, rates go down

Mike..... wait a second... Krista, the mortgage guy in your office... yuk, no, yuk... lol ANyhow... seriously, I love when this happens, I mean, I hate when this happens because the average consumer doesn't understand when they will see this on the news tonight. There will be plenty of phone calls saying that they heard that rates came down... At least in recent years, I do see the news media explaining this a little better. But the end result is not the same. Just like those school exercises, where you told someone next to you in the circle a sentence. And by the time it came back to you, your sentence was way off base. Again, it goes back to more education with the general public.

Mike,

Nice video clip. I already received an email from a lender saying the cut will help home buyers along with his current rates, so I'm glad I checked out your post.

DEC

2007

Thanks for the quick explanation. I know this is the case, but always have trouble explaining it to the consumer.

Krista - Thanks, but this isn't about that inverse relationship. See Jeff's comment.

Jeff - Thanks as always.

Fran - You should send a link to this post to that Lender, start with "Hey Knucklehead..."

Chrissy - I can explain this concept until I am blue in the face - sometimes for people to get it they have to SEE it on TV.

DEC

2007

Mike

I'm trying to get a copy of a spot on FoxBusiness the other day....it was an explanation of where rates were that day (which was pretty accurate), with a closing commentary that said 'unlike those bankrate numbers that we showed yesterday', so it seems like at least some people have figured out their numbers aren't completely accurate.

Bill - Everyday we fight the good fight. We fight against the bait and switchers and the mis advertisers. Yet just yesterday I had a friend looking at doing a loan with a LendingTree Lender. In part it wasn't all his fault. He went to Costco - they diverted him to them.

Let me know if you find the link to that clip.

I'd like to see it and use it!

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I'm waiting till they drop lower

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