Feds Cut Rates Again!

Discussion in 'Credit Talk' started by AnnMarie, May 15, 2001.

  1. AnnMarie

    AnnMarie Well-Known Member

    Another 1/2 point...so that results in what? probably a 1/4 point for the mortgage????
    I read it's the lowest in 7 years...can't complain about that!

  2. Jim

    Jim Well-Known Member


    I am laughing out loud here...

    Mr. Miller lowered me to a 13.9% variable Cap One gold card apr. in March. When the bill arrived in April, the apr was reduced to 12.3% due to the fed. Now my apr. should drop again.

    My credit history is not suitable for Cap One "Platinum" yet but the apr. is close.

  3. MikeB

    MikeB Banned

    From what I read at some financial website, mortgage rates tend to go lower right before an interest rate reduction (FOMC) and tend to rise somewhat a short time after the cut. In otherwords, lenders don't always pass along all the savings or take their time doing it. I am sure you are suprized at this. Not.
  4. Momof3

    Momof3 Well-Known Member

    You are correct with this, the mortgage rates jumped up this past Friday, not a happy camper here:(

  5. MikeB

    MikeB Banned

    Yeah, I just hope my credit will improve enough to get a mortgage before rates rise again!
  6. VJ

    VJ Well-Known Member

    Friday rates were all over the place and higher.

    The part your not taking into account is that with interest rates so low it may be perceived as being inflationary and mortgage rates may end up going higher while prime goes down.

  7. MikeB

    MikeB Banned

    Actually, rising inflation is a given since another Bush is in office now. Of course he will blame Bill Clinton for it. Haha.
  8. VJ

    VJ Well-Known Member

    NEW YORK (Reuters) - The Federal Reserve's half percentage point interest rate cut on Tuesday is not expected to push mortgage rates back under 7 percent to lows last seen in January, but lenders are bracing for a surge in home buyer interest.

  9. DaveLV

    DaveLV Well-Known Member

    Interesting. My 15.9% variable rate Mr. Miller gave me on my Capital One card is based on LIBOR, not US prime rate.
  10. judyputy

    judyputy Well-Known Member

    So Mom,

    I guess that means you hadn't locked in at the lower rate? Did you lock in this time? I thought I saw a small increase in the rates. LUCKILY. we are going with an equity loan and the local bank here DROPPED that rate to 7.49 from 7.99!

    Sorry for you! Good for me!
  11. hurricane5

    hurricane5 Well-Known Member

    One of the things that folks have to be careful about is that the Feds are cutting "short term" interest rates, great for CCs, home equity loans, etc but not necessarily a reduction in 30 year mortgage rates. It usually takes about 4-6 months from when the rate cut happens to when "we" can actually see changes in mortgage rates. Those who have 15yr mortgages usually see a change faster.

    Another "new" member adding...
  12. creditwork

    creditwork Well-Known Member

    Very true Hurricane. The reason mortgages don't always change with the Fed cuts is because long term interest are not affected by this changes, but by the demand in the bond markets.

  13. fingrrrl

    fingrrrl Well-Known Member

    It's really sad though...mortgage rates have fallen 2% since last summer, from 9 to about 7, but CD rates have fallen nearly 4%, from 7 to almost 3. Again, this crappy government of ours puts into motion events where the banks reward you only when you're borrowing money, never when you're trying to save. It's ridiculous...as for me, I have fixed APR on my credit cards, so I'm not seeing any change AT ALL!!! Again, absolutely ridiculous.
  14. creditwork

    creditwork Well-Known Member

    Even fix rates have come down. If you want to save, CreditWorks offers a great plan. We have been paying over 19% APR to all of our members since 1996.


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