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lululu
LIF Adult
Member since 7/05 9509 total posts
Name:
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The fed didn't increase rates today....
That is good for you who are still in the market for a home!
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Posted 8/8/06 2:27 PM  |
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Long Island Weddings
Long Island's Largest Bridal Resource | Prudential Douglas Elliman Real Estate |
Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: The fed didn't increase rates today....
yep and the projection is that the rates will stay stable for a while..too bad they can't be lowered.
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| Posted 8/8/06 2:37 PM |
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lululu
LIF Adult
Member since 7/05 9509 total posts
Name:
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Re: The fed didn't increase rates today....
Well at least they have stopped raising while the rates are still historically low.... Definitely not as good as they were the past couple years but it could be a lot worse......
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| Posted 8/8/06 2:43 PM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: The fed didn't increase rates today....
I guess I am in the minority here. I hardly see this is a blessing.
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| Posted 8/8/06 2:45 PM |
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ODonnell
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Member since 9/05 5983 total posts
Name:
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Re: The fed didn't increase rates today....
Posted by SweetestOfPeas
I guess I am in the minority here. I hardly see this is a blessing.
I can't believe that you would not think this is an advantage to anyone who is either a home-owner or in the market
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| Posted 8/8/06 2:47 PM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: The fed didn't increase rates today....
Posted by ODonnell
Posted by SweetestOfPeas
I guess I am in the minority here. I hardly see this is a blessing.
I can't believe that you would not think this is an advantage to anyone who is either a home-owner or in the market
Call me a pessimist and bitter (I am) but with the avg house on LI being $422K (a record high), it is really irrelevant that the interest rates aren’t going up. IMO, you can either afford a house here or you can’t. a few bucks a month isn’t going to make or break a deal.
Now sellers have another reason to not lower prices.
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| Posted 8/8/06 2:50 PM |
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lululu
LIF Adult
Member since 7/05 9509 total posts
Name:
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Re: The fed didn't increase rates today....
Posted by SweetestOfPeas
Call me a pessimist and bitter (I am) but with the avg house on LI being $422K (a record high), it is really irrelevant that the interest rates aren’t going up. IMO, you can either afford a house here or you can’t. a few bucks a month isn’t going to make or break a deal.
Now sellers have another reason to not lower prices.
Well I guess it all depends on how you look at it - but the market seems to indicate that sellers are not lowering their prices anyway - so at least this will give a little relief to those who havent yet purchased. Also, i do think that rates play a big role in affordability.
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| Posted 8/8/06 2:52 PM |
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~Colleen~
my loves...
Member since 5/05 9129 total posts
Name:
guess
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Re: The fed didn't increase rates today....
I have to agree - rates often play a huge part in the affordability of a purchase. I think it's great that the rates haven't gone down - they're not what they were 2 years ago, but historically, they're still (significantly) low.
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| Posted 8/8/06 2:58 PM |
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AimeeE2006
Time flies!
Member since 1/06 5698 total posts
Name:
Aimee
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Re: The fed didn't increase rates today....
We just locked in our rate yesterday for our mortgage...it'll be 6.375% I believe. Which from a few weeks ago is down .3 - We were excited.
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| Posted 8/8/06 3:04 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: The fed didn't increase rates today....
the fed funds rate has little effect on mortgage rates.
mortgage rates are based on TBills...which have been on a downward trend the past few weeks.
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| Posted 8/8/06 3:07 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: The fed didn't increase rates today....
It has the biggest impact on non-secured loans and any loan based on prime. Helocs will be stable for a while now.
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| Posted 8/8/06 3:10 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: The fed didn't increase rates today....
Posted by Blu-ize
It has the biggest impact on non-secured loans and any loan based on prime. Helocs will be stable for a while now.
right - but it doesnt have an effect on mortgage rates!
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| Posted 8/8/06 3:12 PM |
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~Colleen~
my loves...
Member since 5/05 9129 total posts
Name:
guess
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Re: The fed didn't increase rates today....
Posted by AimeeE2006
We just locked in our rate yesterday for our mortgage...it'll be 6.375% I believe. Which from a few weeks ago is down .3 - We were excited.
Are you paying any points? That's a great rate! Ours was 6.5% (no points) back in May...we missed the boat on the 6.375% by "gambling" for 2 weeks 
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| Posted 8/8/06 3:16 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: The fed didn't increase rates today....
Posted by Meaghan729
Posted by Blu-ize
It has the biggest impact on non-secured loans and any loan based on prime. Helocs will be stable for a while now.
right - but it doesnt have an effect on mortgage rates!
it will for those looking to do a 80/10/10 or 80/15/5...no?
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| Posted 8/8/06 3:16 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: The fed didn't increase rates today....
Posted by Colleen9304
Posted by AimeeE2006
We just locked in our rate yesterday for our mortgage...it'll be 6.375% I believe. Which from a few weeks ago is down .3 - We were excited.
Are you paying any points? That's a great rate! Ours was 6.5% (no points) back in May...we missed the boat on the 6.375% by "gambling" for 2 weeks
Those are still good rates. 3 years ago when we bought we got 6%. We refinanced and got 5.5%..
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| Posted 8/8/06 3:17 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: The fed didn't increase rates today....
Posted by Blu-ize
Posted by Meaghan729
Posted by Blu-ize
It has the biggest impact on non-secured loans and any loan based on prime. Helocs will be stable for a while now.
right - but it doesnt have an effect on mortgage rates!
it will for those looking to do a 80/10/10 or 80/15/5...no?
the federal funds rate does not have a direct effect on the mortgage rate.
yes, if you have a HELOC your interest rate would go up. but if you are paying PMI or put 20% down it wont. I was just trying to say that mortgage rates are based on Treasuries, not fed funds. and treasuries have been falling.
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| Posted 8/8/06 3:17 PM |
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lululu
LIF Adult
Member since 7/05 9509 total posts
Name:
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Re: The fed didn't increase rates today....
While fed funds dont have a direct effect on mortgage rates - they do have an indirect effect - so this should be good news for anyone looking to purchase a home.
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| Posted 8/8/06 3:20 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: The fed didn't increase rates today....
I just think people make the mistake that they hear fed funds isnt going up so that means mortgage rates wont - its a misconseption i wanted to clear up.
The federal reserves main job is to control inflation - which means if the didnt raise rates, inflation is under control, for now anyway.
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| Posted 8/8/06 3:27 PM |
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Kelly9904
Mommy to 2 amazing little boys
Member since 5/05 9306 total posts
Name:
Kelly
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Re: The fed didn't increase rates today....
Message edited 1/30/2009 2:28:34 PM.
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| Posted 8/8/06 5:06 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: The fed didn't increase rates today....
I understand what you are saying. However coming from someone who is in the process of buying (and selling) I am glad the rates seem to be stablizing for now. The house prices arent going to drop drastically if the rate goes up half a point, however half a point can make a significate difference in your monthly payments. On the mortgage we are lookign to take, that would be an additional $100 per month. That adds up quickly. But I am sure that if the mortgage rates went up that .5% that the sellers wouldnt think to themselves, "let me lower my price by 10K to compensate"
you make a great point - however as more people are priced out of the market due to rates going up .5%, there will in turn be less buyers, so sellers will eventually be forced to drop their price. it wont happen the next day, but it is a trickle down effect.
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| Posted 8/8/06 5:14 PM |
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Diana1215
Living on a prayer!!!
Member since 10/05 29450 total posts
Name:
Diana
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Re: The fed didn't increase rates today....
Posted by Blu-ize
It has the biggest impact on non-secured loans and any loan based on prime. Helocs will be stable for a while now.
Thank the good lord!!! My payments went from $200 to $550 a month. 
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| Posted 8/8/06 5:58 PM |
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AimeeE2006
Time flies!
Member since 1/06 5698 total posts
Name:
Aimee
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Re: The fed didn't increase rates today....
Posted by Colleen9304
Posted by AimeeE2006
We just locked in our rate yesterday for our mortgage...it'll be 6.375% I believe. Which from a few weeks ago is down .3 - We were excited.
Are you paying any points? That's a great rate! Ours was 6.5% (no points) back in May...we missed the boat on the 6.375% by "gambling" for 2 weeks
We are paying for 1 point...but at half cost because we are going through dh's company.
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| Posted 8/8/06 10:06 PM |
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msrsfeb
LIF Adult
Member since 2/06 1277 total posts
Name:
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Re: The fed didn't increase rates today....
"We are paying for 1 point...but at half cost because we are going through dh's company. "
What company is it?
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| Posted 8/8/06 10:28 PM |
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Kelly9904
Mommy to 2 amazing little boys
Member since 5/05 9306 total posts
Name:
Kelly
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Re: The fed didn't increase rates today....
Message edited 1/30/2009 2:28:46 PM.
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| Posted 8/8/06 11:12 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: The fed didn't increase rates today....
Posted by Kelly9904
Posted by Meaghan729
you make a great point - however as more people are priced out of the market due to rates going up .5%, there will in turn be less buyers, so sellers will eventually be forced to drop their price. it wont happen the next day, but it is a trickle down effect.
The key word is "eventually"
Unless a home buyer is willing to wait what could be years....I personally dont believe the house prices are going to go down THAT drastically....It will be a slow down first, then a slight decrease. IMO
eventually isnt years, imo, more like months.
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| Posted 8/9/06 7:01 AM |
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