| Posted By |
Message |
| Pages: [1] 2 |
Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
|
So the Market is Definitely Softening
Do you think the Fed will keep interest rates the way it is or lower them or keep raising them.
I've heard conflicting reports about thisl
|
Posted 8/23/06 2:52 PM  |
| |
|
Long Island Weddings
Long Island's Largest Bridal Resource | Prudential Douglas Elliman Real Estate |
MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
|
Re: So the Market is Definitely Softening
The Federal Reserves main job is to control inflation. I think they may hold off again. im kinda split.
|
| Posted 8/23/06 2:54 PM |
| |
|
Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
|
Re: So the Market is Definitely Softening
I kind of think so as well..I think though over the next 12 months they may even lower the rates.
|
| Posted 8/23/06 2:57 PM |
| |
|
kerrycec03
Mom of 2 beautiful boys!!
Member since 6/06 13519 total posts
Name:
Kerry
|
Re: So the Market is Definitely Softening
Posted by Blu-ize
I kind of think so as well..I think though over the next 12 months they may even lower the rates.
that would be GREAT!!
|
| Posted 8/23/06 3:08 PM |
| |
|
Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
|
Re: So the Market is Definitely Softening
Posted by kerrycec03
Posted by Blu-ize
I kind of think so as well..I think though over the next 12 months they may even lower the rates.
that would be GREAT!!
great for everybody!
|
| Posted 8/23/06 3:09 PM |
| |
|
lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
|
Re: So the Market is Definitely Softening
I think that for now they will keep them stable and perhaps lower them in sometime in 2007.
|
| Posted 8/23/06 3:11 PM |
| |
|
MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
|
Re: So the Market is Definitely Softening
Posted by lululu
I think that for now they will keep them stable and perhaps lower them in sometime in 2007.
I doubt they will lower the rates in the next 12 mo - it all depends on where inflation is going though!
|
| Posted 8/23/06 3:13 PM |
| |
|
Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
|
Re: So the Market is Definitely Softening
If inflation seems to be creeping up I could see them actually lowering the rates. I think if that happened it wouldn't be until 2007. It would also be in the smallest increments.
|
| Posted 8/23/06 3:15 PM |
| |
|
MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
|
Re: So the Market is Definitely Softening
i agree- it would be only a quarter point - if they did - i dont like this Bernanke guy- i miss Alan!!
|
| Posted 8/23/06 3:16 PM |
| |
|
Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
|
Re: So the Market is Definitely Softening
Posted by Meaghan729
i agree- it would be only a quarter point - if they did - i dont like this Bernanke guy- i miss Alan!!
me too! Bernake makes me nervous!
|
| Posted 8/23/06 3:17 PM |
| |
|
MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
|
Re: So the Market is Definitely Softening
Greenspan had a way of saying something and then no one could figure out what he meant, so the market wouldnt react everytime he spoke.
Bernanke needs to realize EVERY TIME he speaks, people are listening!
|
| Posted 8/23/06 3:18 PM |
| |
|
Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
|
Re: So the Market is Definitely Softening
It's like a new teacher, you really don't know what to expect at the start of the year..with Greenspan, we got used to him, we understood his MO..we trusted him more..nobody jumped when he farted.
|
| Posted 8/23/06 3:20 PM |
| |
|
MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
|
Re: So the Market is Definitely Softening
Posted by Blu-ize
It's like a new teacher, you really don't know what to expect at the start of the year..with Greenspan, we got used to him, we understood his MO..we trusted him more..nobody jumped when he farted.
|
| Posted 8/23/06 3:22 PM |
| |
|
riniko
LIF Toddler
Member since 3/06 486 total posts
Name:
|
Re: So the Market is Definitely Softening
Is there a specific date that the Fed is likely to increase rates?
i.e. do they meet monthly? quarterly? to assess
|
| Posted 8/23/06 4:01 PM |
| |
|
MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
|
Re: So the Market is Definitely Softening
Posted by riniko
Is there a specific date that the Fed is likely to increase rates?
i.e. do they meet monthly? quarterly? to assess
here's some good info i found:
The real power of the Fed is its influence over monetary policy. The Federal Open Markets Committee meets eight times a year to make decisions on short-term interest rates, especially what's known as the federal funds rate. By law, the Fed is supposed to "promote effectively the goals of maximum employment, stable prices and moderate long-term interest rates."
How does the Fed work?
The Fed has three main tools to do this job. The most important is to set the federal funds rate, which is what banks pay each other for overnight loans. The committee sets a target for this rate, but not the actual rate itself. When the news media report that the Fed changed interest rates, it's the federal funds rate that is being referred to.
The second tool is the discount rate, which is what banks pay to borrow money from a Federal Reserve Bank. This is usually lower than the federal funds rate, but the two are closely tied.
The third tool is the reserve requirement. This is a percentage of deposits that all banks must hold in reserve and cannot loan out. This rate is usually around 10 percent, but it can change from time to time. This is a very powerful tool, but it is rarely used. So this power is mostly theoretical, held in reserve, so to speak.
|
| Posted 8/23/06 4:05 PM |
| |
|
Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
|
Re: So the Market is Definitely Softening
ABC just did a story on it
they didn't mention interest rates-
|
| Posted 8/23/06 6:40 PM |
| |
|
Redhead
You Live, You Learn
Member since 5/05 31871 total posts
Name:
Jennifer
|
Re: So the Market is Definitely Softening
Posted by Meaghan729
Posted by lululu
I think that for now they will keep them stable and perhaps lower them in sometime in 2007.
I doubt they will lower the rates in the next 12 mo - it all depends on where inflation is going though!
i agree
i really DO NOT see them lowering ...
yes there will be ups and downs but i do not see an decrease coming our way
and to be honest i am ok with that..
|
| Posted 8/23/06 6:43 PM |
| |
|
Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
|
Re: So the Market is Definitely Softening
it's better to pay less for a house with a higher rate
then pay more and have a lower rate
even though the payment will be about the same- you can always re-fi
where as if you paid more- you could be in a positon of oweing more then your house is worth
|
| Posted 8/23/06 8:13 PM |
| |
|
MrsBlueSash
Love my sailor
Member since 6/05 5793 total posts
Name:
Christian
|
Re: So the Market is Definitely Softening
I was thinking abuout that today. I don't think they can raise them anymore, they are towing the line and need to keep the market from completely crashing; inflation has slowed enough fopr the time being.
ETA: JMO but I disagree with the above; it makes no sense to me to pay more in interest initially and count on refinance rate that may or may not happen anytime soon. If the payments are the same then I would rather have a larger potion go toward principle not interest, even if folks taut the tax write-off. Interest is a rental fee for money that's not yours and I would rather pay less.
Message edited 8/23/2006 8:23:03 PM.
|
| Posted 8/23/06 8:17 PM |
| |
|
MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
|
Re: So the Market is Definitely Softening
Posted by MrsBlueSash
I was thinking abuout that today. I don't think they can raise them anymore, they are towing the line and need to keep the market from completely crashing; inflation has slowed enough fopr the time being.
there are sooo many different factors, i think its hard to tell.....i hate economics!
CPI, unemployment, housing market, consumer spending, consumer confidence, are all important reports that are used in their decision to tighten monetary policy.
|
| Posted 8/23/06 8:20 PM |
| |
|
Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
|
Re: So the Market is Definitely Softening
according to Jake- rates are usually the lowest this time of year- so it's tough to say what's going to happen
this is the first year for people with interest only's and other adjustables come due
there are people who bought $1M houses who have only been paying the interest on them for the past 5 years and now the house is not going to appraise for the amount they owe-
I think that is going to have a big effect on the market as well as all of the other factors
|
| Posted 8/23/06 8:23 PM |
| |
|
MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
|
Re: So the Market is Definitely Softening
Posted by Beth1210
according to Jake- rates are usually the lowest this time of year- so it's tough to say what's going to happen
this is the first year for people with interest only's and other adjustables come due
there are people who bought $1M houses who have only been paying the interest on them for the past 5 years and now the house is not going to appraise for the amount they owe-
I think that is going to have a big effect on the market as well as all of the other factors
absolutely! and if you read that mortgage apps increased this week - it was due to refinancing arms and interest only. new mortgage applications actually fell.
I think there will be a lot of trouble when people realize that there mortgage payments are going to go way up!
|
| Posted 8/23/06 8:27 PM |
| |
|
Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
|
Re: So the Market is Definitely Softening
absolutely! and if you read that mortgage apps increased this week - it was due to refinancing arms and interest only. new mortgage applications actually fell.
I think there will be a lot of trouble when people realize that there mortgage payments are going to go way up!
business is booming again for Jake- after about 5 BAD months (thank g-d since I have no JOB)
|
| Posted 8/23/06 8:29 PM |
| |
|
Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
|
Re: So the Market is Definitely Softening
another story on nightline
they are saying the boom is over
"the market got too rich to keep going up"
|
| Posted 8/23/06 11:53 PM |
| |
|
lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
|
Re: So the Market is Definitely Softening
I was just thinking about this and I am curious - people who got IO's 5 years ago and are refinancing now - were the rates 5 years ago much better than they are now? i remember them being about the same.....
so essentially if someone really couldnt afford the increase in payment - they could probably re-fi and get another IO at a rate similar to what they were paying..... And that wouldnt have an impact on the market at all.....
Does this make sense? Or am I missing something?
|
| Posted 8/25/06 11:55 AM |
| |
|
| Pages: [1] 2 |
