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Interest Rates Cut Half Point

Discussion in 'Credit Talk' started by VJ, Sep 17, 2001.

  1. Sep 17, 2001 #1
    VJ

    VJ Well-Known Member

  3. Sep 17, 2001 #2
    GEORGE

    GEORGE Well-Known Member

    1.00% TO 1.50% WOULD HAVE BEEN BETTER...

    AS THEY SAY TOO LITTLE TOO LATE!!!
     
  4. Sep 17, 2001 #3
    Bill B

    Bill B Well-Known Member

    Does this maen our cards will come down a half point too? The market is so sad right now..All the people are making things worse.I just sent in a thousand..I know it aint much but i tried..
     
  5. Sep 17, 2001 #4
    GEORGE

    GEORGE Well-Known Member

    IF YOU HAVE A VARIABLE RATE...BUT MANY CARDS ARE PUTTING IN "FLOOR LIMIT"...

    PRIME + .09 WOULD BE 6.09%...BUT IF THE "FLOOR LIMIT" IS 9.59%...YOUR INTEREST RATE IS 9.59%...

    IT IS A SCAM...BECAUSE YOU WOULD NEVER GET THE PRIME + .09 EXCEPT WHEN IT PRIME WAS 9.50%...AND IT PROBABLY WON'T BE THAT FOR A LONG TIME...
     
  6. Sep 17, 2001 #5
    supershawn

    supershawn Well-Known Member

    can you say......REFI?

    YAY!



    Shawn
     
  7. Sep 17, 2001 #6
    GEORGE

    GEORGE Well-Known Member

    Mortgage rates MAY go up...(THEY SAID ON THE NEWS THE LAST 0.50% DROP THAT MORTGAGE RATES ARE NOT TIED TO PRIME)

    RE-FI CREDIT CARD PORTFOLIO...GOOD, DO IT...
     
  8. Sep 17, 2001 #7
    Jeff

    Jeff Guest

    FYI: Mortgage rates are priced based on the 10 year note. 10 year note trading down ( I am trading as I write this). Yield up. These securities have an inverse price/yield relationship.
     
  9. Sep 17, 2001 #8
    GEORGE

    GEORGE Well-Known Member

    Are mortgage rates going DOWN or UP???

    Weird this posted higher up on the page...
     
  10. Sep 17, 2001 #9
    Jeff

    Jeff Guest

    30 yr. bond used in pricing models as well.
     
  11. Sep 17, 2001 #10
    GEORGE

    GEORGE Well-Known Member

    In my city best now is 30 years @ 6.00% and 6.37%...MANY ARE HIGHER...CLOSER TO 7.00%...
     
  12. Sep 17, 2001 #11
    Jeff

    Jeff Guest

    Mortgage rates usually move in the direction of the yield of the treasury securities.
     
  13. Sep 17, 2001 #12
    Jeff

    Jeff Guest

    I am backing up your point George, that mortgage rates could potentially rise.
     
  14. Sep 17, 2001 #13
    G. Fisher

    G. Fisher Banned

    What web site shows that relationship, and which shows the relationship between Fed Funds Rate cuts and mortgage loan rates (if any)?

    Please explain how mortgage loan rates are based on the T-note. Is there a fixed difference between the two? If so, who decides that margin? Where do mortgage lenders get information by which to set rates?
     
  15. Sep 17, 2001 #14
    Jeff

    Jeff Guest

    Greg,

    There are pricing models that are used by the industry. Specifically, I can't answer your question.

    I don't have a web reference at the ready that explains the relationships between treasuries and mortgage rates, fed rate adjustments, etc. but I know there are many. If you use google etc. you will find what you are looking for. If you find something good maybe you could post a link for those interested.

    My time is limited right now as I am working.

    Jeff
     

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