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paramount.
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November 26, 2007 at 11:28 AM #10990November 26, 2007 at 11:49 AM #103618
JWM in SD
ParticipantNo, because long term rates don’t necessarily correlate to the Fed Funds rate. Besides, foreign lending to USA would dry up completely at that point and the dollar would lose even more than it already has. At that point, you’ll see mass layoffs because companies won’t be able to predict their expenses with a high degree of certainty. I.E. the inflation won’t make into wages.
November 26, 2007 at 11:49 AM #103739JWM in SD
ParticipantNo, because long term rates don’t necessarily correlate to the Fed Funds rate. Besides, foreign lending to USA would dry up completely at that point and the dollar would lose even more than it already has. At that point, you’ll see mass layoffs because companies won’t be able to predict their expenses with a high degree of certainty. I.E. the inflation won’t make into wages.
November 26, 2007 at 11:49 AM #103761JWM in SD
ParticipantNo, because long term rates don’t necessarily correlate to the Fed Funds rate. Besides, foreign lending to USA would dry up completely at that point and the dollar would lose even more than it already has. At that point, you’ll see mass layoffs because companies won’t be able to predict their expenses with a high degree of certainty. I.E. the inflation won’t make into wages.
November 26, 2007 at 11:49 AM #103712JWM in SD
ParticipantNo, because long term rates don’t necessarily correlate to the Fed Funds rate. Besides, foreign lending to USA would dry up completely at that point and the dollar would lose even more than it already has. At that point, you’ll see mass layoffs because companies won’t be able to predict their expenses with a high degree of certainty. I.E. the inflation won’t make into wages.
November 26, 2007 at 11:49 AM #103700JWM in SD
ParticipantNo, because long term rates don’t necessarily correlate to the Fed Funds rate. Besides, foreign lending to USA would dry up completely at that point and the dollar would lose even more than it already has. At that point, you’ll see mass layoffs because companies won’t be able to predict their expenses with a high degree of certainty. I.E. the inflation won’t make into wages.
November 26, 2007 at 12:07 PM #103622alarmclock
ParticipantIf you felt that mortgage rates were going to rise, is there a product that lets you “lock in” a desirable mortagage rate several years before the real estate purchase? It would be trivial for the lender to calculate and charge the interest difference between the mortgage rate and the current rate of interest on a CD on the to-be-lent money.
November 26, 2007 at 12:07 PM #103717alarmclock
ParticipantIf you felt that mortgage rates were going to rise, is there a product that lets you “lock in” a desirable mortagage rate several years before the real estate purchase? It would be trivial for the lender to calculate and charge the interest difference between the mortgage rate and the current rate of interest on a CD on the to-be-lent money.
November 26, 2007 at 12:07 PM #103766alarmclock
ParticipantIf you felt that mortgage rates were going to rise, is there a product that lets you “lock in” a desirable mortagage rate several years before the real estate purchase? It would be trivial for the lender to calculate and charge the interest difference between the mortgage rate and the current rate of interest on a CD on the to-be-lent money.
November 26, 2007 at 12:07 PM #103744alarmclock
ParticipantIf you felt that mortgage rates were going to rise, is there a product that lets you “lock in” a desirable mortagage rate several years before the real estate purchase? It would be trivial for the lender to calculate and charge the interest difference between the mortgage rate and the current rate of interest on a CD on the to-be-lent money.
November 26, 2007 at 12:07 PM #103704alarmclock
ParticipantIf you felt that mortgage rates were going to rise, is there a product that lets you “lock in” a desirable mortagage rate several years before the real estate purchase? It would be trivial for the lender to calculate and charge the interest difference between the mortgage rate and the current rate of interest on a CD on the to-be-lent money.
November 26, 2007 at 12:20 PM #103722(former)FormerSanDiegan
ParticipantNo, because long term rates don’t necessarily correlate to the Fed Funds rate.
However, the reset rates DO correlate with the Fed Funds rate. Mortgage resets over the next 12-18 months have been cited as the next wave of downward pressure. These are primarily alt-A and prime borrowers.
The rates over the next 24 months WILL have an impact on these resets and WILL have an impact on whether or not foreclosure rates will continue to trend higher or start to flatten.For example, ALT-A and Prime mortgages tied to the 1-year LIBOR with the typical 2.25% margin would rest currently at 6.75%.
November 26, 2007 at 12:20 PM #103709(former)FormerSanDiegan
ParticipantNo, because long term rates don’t necessarily correlate to the Fed Funds rate.
However, the reset rates DO correlate with the Fed Funds rate. Mortgage resets over the next 12-18 months have been cited as the next wave of downward pressure. These are primarily alt-A and prime borrowers.
The rates over the next 24 months WILL have an impact on these resets and WILL have an impact on whether or not foreclosure rates will continue to trend higher or start to flatten.For example, ALT-A and Prime mortgages tied to the 1-year LIBOR with the typical 2.25% margin would rest currently at 6.75%.
November 26, 2007 at 12:20 PM #103749(former)FormerSanDiegan
ParticipantNo, because long term rates don’t necessarily correlate to the Fed Funds rate.
However, the reset rates DO correlate with the Fed Funds rate. Mortgage resets over the next 12-18 months have been cited as the next wave of downward pressure. These are primarily alt-A and prime borrowers.
The rates over the next 24 months WILL have an impact on these resets and WILL have an impact on whether or not foreclosure rates will continue to trend higher or start to flatten.For example, ALT-A and Prime mortgages tied to the 1-year LIBOR with the typical 2.25% margin would rest currently at 6.75%.
November 26, 2007 at 12:20 PM #103771(former)FormerSanDiegan
ParticipantNo, because long term rates don’t necessarily correlate to the Fed Funds rate.
However, the reset rates DO correlate with the Fed Funds rate. Mortgage resets over the next 12-18 months have been cited as the next wave of downward pressure. These are primarily alt-A and prime borrowers.
The rates over the next 24 months WILL have an impact on these resets and WILL have an impact on whether or not foreclosure rates will continue to trend higher or start to flatten.For example, ALT-A and Prime mortgages tied to the 1-year LIBOR with the typical 2.25% margin would rest currently at 6.75%.
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