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Old 03-19-2015, 02:41 PM
 
Location: 75068
26 posts, read 45,635 times
Reputation: 19

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US Fed Reserve Drops



Does it mean, Mortgage interest are going up .


1. If yes, do anyone know how much ( estimate only )
2. If yes, New Homes prices will stay same or will go high or Low.
3. Can we lock interest rate for more than 60 days ?
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Old 03-19-2015, 04:48 PM
 
19,778 posts, read 18,055,300 times
Reputation: 17257
Quote:
Originally Posted by new_to_Dallas_2014 View Post
US Fed Reserve Drops



Does it mean, Mortgage interest are going up .


1. If yes, do anyone know how much ( estimate only )
2. If yes, New Homes prices will stay same or will go high or Low.
3. Can we lock interest rate for more than 60 days ?

Short term rates:

Federal Reserve OMC actions impact short term interest rates which have little to do with mortgage rates.

BTW - The Federal Reserve did not drop anything yesterday except maybe their US economic outlook going forward. They made no interest rate adjustments.


Long term rates:

More importantly in this context - US longer term debt instrument rates have ticked up a bit the last several days. That does indicate that mortgage rates might increase soon - like next week. Those rates will not explode upwards tho.
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Old 03-19-2015, 07:21 PM
 
110 posts, read 168,407 times
Reputation: 145
The federal reserve has made no changes to interest rates.
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Old 03-19-2015, 07:37 PM
 
Location: plano
7,887 posts, read 11,401,514 times
Reputation: 7798
EDS nailed it they only dropped the word patient about raising short term interest rates. The chairwoman said that does not mean they are now impatient and raising rates in April. EDS is also correct, mortgage rates tend to track seven year bond rates, track by moving up or down as those bond rates move, it does not mean mortgages rates and seven year bonds are the same rate. Mortgage rates mad treasury rates already have factored in a June rates increase for short term rates by the fed, nothing has really changed. But rates this good are unlikely to be this good in three months or so down the road.

My thoughts are worth exactly what you paid me for them. If I knew what was going to happen, I wouldn't be on CD posting!
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