Best and Worst case scenarios for the next 8-12 months?

[ChipL]

Smart.....

[Philip T]

Originally Posted by sneezecake

Curious - what does an election year have to do with anything, and is this a time-proven trend?

Well sure, it is all a politick game. The whole interest game is about suckering the idiot population into paying to get the use of their own money. Which is a pretty good scam if you think about. Most folks never do and thus it can continue.

Have to keep in mind the Federal Reserve or "Fed" is not part of the Federal Government. It is a private bank that the member banks belong to and support. Sort of like Federal Express is not part of the Federal Government.

However, they have been given the monopoly over the money supply . . . by the Congress and allowed the Executive branch. If the Fed and the banks crash things during the election year, we slumbering idiiots of America may wake up and actually vote the dirtbags out of Congress. (not real likely because both the Ds and Rs are on board with this). If a competent government came it, it may throw out the Federal Reserve. Game over.

But towards your question -- If you look at past modeling, think very late 70's into the early '80s. They let inflation run until Reagan, et al came in. Then raised interest to profit and pull inflation rates down. If that model re-occurs, they will let the bad debts and low interest run for a while, and then start snapping things up after the election.

[GLS]

Originally Posted by sneezecake

But that would be the Fed rate, not mortgage rates...I've been reading a lot of stuff that says the latest Fed rate cut may cause rates to rise.

I am just nervous because I may be signing to build a house and I have to worry about rates in 7 months as we're stretched thin at 6%

Since it is obvious from several posts that no one can predict rates seven months ahead accurately, are there any options open to you that would mitigate your risk? For example, if you are building the house yourself, I assume you are getting a construction loan that converts to a conventional at the point of occupancy. Can you offer a fee that the lender would accept to lock in a max rate? If you are using a builder in a subdivision, you could try to negotiate some form of rate lock max. or rate "buy-down" as an incentive for you to complete the deal.

Although these approaches are not common that far in advance, you have a better chance of limiting your interest rate risk than you do of predicting what mortgage rates will be. Personally, I would be looking for some insurance policy to keep me from being "nervous" for 7 months. Good luck.

[freedom]

Originally Posted by sneezecake

But that would be the Fed rate, not mortgage rates...I've been reading a lot of stuff that says the latest Fed rate cut may cause rates to rise.

I am just nervous because I may be signing to build a house and I have to worry about rates in 7 months as we're stretched thin at 6%

You should be able to lock in the rate during the construction period. Any Mortgage brokers out there that confirm this.

I know local banks do it all the time. Construction to conventional rollover. NO double fees, and you can lock in the rate.

best wishes,

freedom

Oops, didn't read GLS.