Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Yesturday the president approved helping Fannie Mae and Freddie Mac with $300Billion.What does this do to the new home mortgage rate?Does it increase or decrease?My home will be built by the end of august and was wondering when will be a good time to lock down that fixed interest rate.Can someone advice me on this?thanks
my take on this is that rates are going up--banks need to make money to add to profit line--even if they are getting cheap money from the Fed they will tack on their profit to it
and regarding Fanny Mae's bailout--why would you give a mega million $$$ corporation money when they cannot keep track of their books
that is just throwing more money down a hole...Bush is an idiot and Congress is too for doing that--they are so afraid that there is a can of worms in there they DON"T want to come out that they are putting money into it to avoid dealing with the real problem...
It 'should' drive the rates lower because now there is more money to lend.
The reason rates were going higher is due to the lack of investors willing to place their monies in mortgage backed securities.
Everyone calls Bush an idiot, but they dont realize that he can only say 'yes' or 'no' to a bill. Those who are running Congress (democrats) are the ones that are pushing this bill.
Quote:
Originally Posted by loves2read
my take on this is that rates are going up--banks need to make money to add to profit line--even if they are getting cheap money from the Fed they will tack on their profit to it
and regarding Fanny Mae's bailout--why would you give a mega million $$$ corporation money when they cannot keep track of their books
that is just throwing more money down a hole...Bush is an idiot and Congress is too for doing that--they are so afraid that there is a can of worms in there they DON"T want to come out that they are putting money into it to avoid dealing with the real problem...
Yesturday the president approved helping Fannie Mae and Freddie Mac with $300Billion.What does this do to the new home mortgage rate?Does it increase or decrease?My home will be built by the end of august and was wondering when will be a good time to lock down that fixed interest rate.Can someone advice me on this?thanks
I would say it does not affect the interest rate pricing directly, but rather keeps Freddie/Fannie in business.
Despite this help, both Fannie and Freddie's stock fell sharply today. Fannie Mae fell to $12.02, dropping $2.98 (20%) and Freddie Mac fell to $8.81, dropping $1.99 (18%).
I dont think its going to change rates much at all. Yes it means Fannie/Freddie will stay in business and the increased demand (even artifical demand by the Treasury) should decrease rates... but the decrease in demand from the public and large investors for stocks in these banks and mortgage backed securities will balance that out.
Banks will keep raising guidelines, fees and rates to ensure profitability.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
