Interest Rates, Pay Attention Now!

By
Mortgage and Lending with Bank of England Mortgage 385907

So, what's going on with rates? I checked the market first thing this morning and we were getting crushed.

Colin Barr, a senior writer for "Fortune," reports that the Fed has reversed its course. That fighting inflation is now its priority. That would mean that there will not be any further dereases, but rather potential increases. Personally I don't believe that there will be any Fed inspired rate increases in the near future, but that doesn't mean that the market, in general, may not push rates higher.

We need consistency from the Fed. Their loosey-goosey attitude toward rate decreases and throwing around $$$$$'s, in general, may have gone to far.

"The last two Fed interest cuts were made, unusually, over the objections of two members of the policy-setting Open Market Committee."  Colin Barr, Fortune.

Does this mean that the Fed surrendered to political and media pressure? 

It might!

One presidential candidate is touting an additional $50 billion dollar stimulas package.

Big Mistake!

We're still have that quick fix mentality. It won't work that way. A consistent, well planned economic policy will lead us back to a higher rate of growth. We STILL haven't had a single quarter of negative economic growth, and therefore by definition are not and have not been in a recession,  no matter what the national media continues to write.

So where are rates headed?

Don't know.

But, I strongly suggest that you,

Pay attention now!

 

 

 

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Rainmaker
1,223,210
Lorrie Semler, REALTORĀ® in the Dallas area. Call/text 972-416-3417
United Real Estate - Addison, TX
Real Service. Real Results. Real Estate

It's a mistake if you don't pay attention ALL the time, not just now.

Jun 12, 2008 05:08 AM #1
Rainmaker
218,087
Joan Mirantz
Homequest Real Estate - Concord, NH
Realtor, GRI, CBR, SRES - Concord New Hampshire

I think most of us have been paying attention for a while now!

Jun 12, 2008 01:45 PM #2
Rainer
6,241
Kerry Constantine
Power Brokers Real Estate - Fort Myers, FL

We need lower mortgage rates! I need to refinance.

Jun 13, 2008 06:01 AM #3
Rainmaker
288,859
Jay Beckingham
Bank of England Mortgage - Delray Beach, FL
Seniors ROCK!

Lorrie,

i agree, but maybe more so now.

Joan,

many do not follow rates daily.

kerry,

i don't think that you'll get that relief soon.

jay

 

Jun 14, 2008 12:08 AM #4
Rainer
120,944
Ronald Gillis
Southwest Florida Notaries (Mortgage Notary Signing Agent) - Port Charlotte, FL
CNSA Southwest Florida. Notaries, Port Charlotte, 941-7-NOTARY

Too many want a quick-fix for every aspect of their life.  Amazing, but that is NOT the way to do things, but people still keep trying anyway.  Have a great day!

Signature

Jun 15, 2008 03:22 AM #5
Rainmaker
288,859
Jay Beckingham
Bank of England Mortgage - Delray Beach, FL
Seniors ROCK!

Ron,

it it keeps on not working.

jay

Jun 19, 2008 04:55 AM #6
Rainmaker
111,202
Lewis Poretz
Apex Home Loans - Annapolis, MD
Business Development Manager

For whatever it's worth -  here is the fix... the only fix in my opinion... and it could be a quick fix

 

The problem is not with the large wholesalers, the Countrywides, Wells, Citi's, etc... they want to do loans... it is the appetite on Wall Street and the fact that MI companies will not insure loans anymore..

In my opinion, The Government needs to step in, advise secondary investors they will carry any insurance on these loans over and beyond what the MI companies cover and dictate to investors becuase of this credit score qualifications will be relaxed to 500 scores. Cash out restrictions must be relaxed as well. Declining market hits must stop.

This may not happen until the next wave of casualties -  the big builders, the local and regional banks....  OR ----   just wait until a few politicans who have always gone stated income in the past get turned down for loans....   then we will see some corrections to underwriting guidelines in a hurry....

Jun 19, 2008 05:11 AM #7
Rainer
53,181
Carey Pott
January Financial - Foothill Ranch, CA

Lewis, typically I'm dead set against most kinds of government intervention in free markets (the scariest words one can hear are "We're the government and we're here to help") but in this case, the problem is too big and potentially catastrophic for us to let the markets take care of it themselves. I don't know what the right amount of intervention is, but I do believe some is necessary.   

Jun 19, 2008 05:22 AM #8
Rainmaker
288,859
Jay Beckingham
Bank of England Mortgage - Delray Beach, FL
Seniors ROCK!

Lewis,

sorry, i really think government involvement is a really bad idea. let the market take care of it.

jay

Jun 23, 2008 01:34 AM #9
Rainmaker
288,859
Jay Beckingham
Bank of England Mortgage - Delray Beach, FL
Seniors ROCK!

Carey,

i'm not sure the gov has the capacity to actually understand the problem. i base that comment on the proposed fixes that i've heard coming from our legislators.

jay

Jun 23, 2008 01:36 AM #10
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Rainmaker
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Jay Beckingham

Seniors ROCK!
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