Posted on 12/24/2015 7:42:44 AM PST by John W
WASHINGTON (AP) -- What Fed rate hike?
One week after the Federal Reserve raised short-term interest rates from record lows, the average on a 30-year fixed-rate mortgage went the other way: It dipped to 3.96 percent from 3.97 percent last week, mortgage giant Freddie Mac says.
The drop is a reminder that the Fed has only an indirect influence on long-term mortgage rates, which more closely track the yield on the 10-year U.S. Treasury note. And that rate, in turn, tends to stay down as long as inflation remains low and investors keep buying Treasurys. The 10-year Treasury yield has declined slightly since the Fed's hike last week
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Wowse! Time to refinance. (again.)
Sheesh!
A good chunk of monetary policy is like trying to push a string. You can make the string available, but market forces will decide whether it makes sense to pick up the string.
I have a daughter and son-in-law with two professional incomes who STILL refuse to buy because they expect prices to go even lower.
2.75%?!! Is that for a 15-year or an adjustable rate?
Well you might has professional kids but doesn’t mean they know anything about real estate.
Nationwide values will go up 3.4% next year and 3.1% for each of the next 4 years. Unless they live in a bad area like Chicago, New Jersey, Connecticut where values are going down and ask yourself why they are wrong. So much for education and no common sense.
Just refinanced yesterday at 2.625%. Happy days are here again
adjustable? 15 yr fixed?
5/1/30.
My old 5/1 ARM was readjusting in April so I found a deal, reduced my monthly payments by $335.00.
Oh I am 70 so I might not make 75. This mortgage allows me time to make a last move, die, move in with the kids or join the peace corp.
There are good reasons to refuse to buy, but that isn’t one of them.
hmmm
I unfortunately live near Los Angeles and work about 40 miles north of downtown. Prices are too high for a decent house. The 4% is great but at $500,000 it is $2,000 or so a month plus taxes and utilities etc.
I go to zillow and look over home prices in my home state of Minnesota and see really nice homes for under $200,000 with a lake view. If I could do my job there I would move back... with a sunlamp for the winters.
15 year. I was 10 years into a 30 year and it actually lowered the monthly payment as well as the maturity date.
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