Interest Rate (foreclosure, credit card, banks, Washington)

[Carlitosway]

How often are interest rates changed by the fed? I know it was done today, when could one expect another one? Is this done periodically, or only when the market needs it?


Sorry for asking such basic questions, but I just don't know about these things.

[UseJeff]

"The Federal Open Market Committee, which began its meeting at 8:30 a.m., will keep its benchmark rate at 5.25 percent for the ninth straight session, according to all 96 economists surveyed by Bloomberg News. The statement is scheduled for 2:15 p.m. in Washington."

According to this they would not have announced the change yet, unless I missed something in the news.

Essentially, they can change the rates whenever they want. Typically they have their meeting, and make a decision. The factors that determine a change are numerous, and I won't claim to know even half of them.

I can say that most economists don't expect the feds rates to go up anytime soon. I personally think they may need to drop soon with the insane mortgage market and foreclosure frenzy.

[muffinman]

Originally Posted by Carlitosway

How often are interest rates changed by the fed? I know it was done today, when could one expect another one? Is this done periodically, or only when the market needs it?


Sorry for asking such basic questions, but I just don't know about these things.

They meet eight times a year. After today's meeting, they'll meet 3 more times.

FRB: Federal Open Market Committee

[TimtheGuy]

Originally Posted by Carlitosway

How often are interest rates changed by the fed? I know it was done today, when could one expect another one? Is this done periodically, or only when the market needs it?


Sorry for asking such basic questions, but I just don't know about these things.

Actually the FED left rates untouched from what I have seen.

[Carlitosway]

Originally Posted by muffinman

They meet eight times a year. After today's meeting, they'll meet 3 more times.

FRB: Federal Open Market Committee

Thanks this is great. :-)

[southernlady5464]

Fed leaves interest rate at 5.25%

NEW YORK -- The Federal Reserve, keeping interest rates unchanged, said yesterday inflation is still the biggest danger to the economy and that the six-year economic expansion won't be undone by tighter credit conditions.

Liz

[renriq02]

I think you have looked at it the wrong way.....

The only 'interest rate' that the Feds change is the Prime Rate.
This affects 2nd mortgages, credit cards, etc.

If you're applying for a mortgage you would need to look at the 10yr bond rates.......

BTW

How's kendall ?
I moved from NMB like 2yrs ago.
There's a lot of ppl from kendall moving to Charlotte, NC

[NewToCA]

Originally Posted by banker0679

I think you have looked at it the wrong way.....

The only 'interest rate' that the Feds change is the Prime Rate.
This affects 2nd mortgages, credit cards, etc.

If you're applying for a mortgage you would need to look at the 10yr bond rates.......

BTW

How's kendall ?
I moved from NMB like 2yrs ago.
There's a lot of ppl from kendall moving to Charlotte, NC

The Feds don't change the Prime Rate, the banks decide to do this. They change the Discount Rate, which subsequently should result in interest rate changes.

[renriq02]

i'm sure you know that Prime rate and discount rates are different?

Federal funds rate go up and down....the margin is around 300 basis points.

When the Fed lower the rate then Prime goes down.

discount rates do not affect the prime rate

[NewToCA]

Originally Posted by banker0679

i'm sure you know that Prime rate and discount rates are different?

Federal funds rate go up and down....the margin is around 300 basis points.

When the Fed lower the rate then Prime goes down.

For clarity, here is an explanation of Fed Discount Rate:

Federal Reserve Discount Rate
Definition

The rate at which member banks may borrow short term funds directly from a Federal Reserve Bank. The discount rate is one of the two interest rates set by the Fed, the other being the Federal funds rate. The Fed actually controls this rate directly, but this fact does not really help in policy implementation, since banks can also find such funds elsewhere. also called discount rate.