GSE backed fixed rates are at their worst level , a high 4.5% points plus above Fed Funds. Is this a major downer or can adjustable rate mortgages relieve this new strain?
Comparison to Fed funds rate, while interesting, is not all that important. Compared to the current rate of inflation (4%) current rates at 6.5-7% are still lower now than a few years ago when they were at 5.5% (and then-inflation at 2%).
Real interest rates are currently pretty low.
Adjustable rate mortgage do not offer enough of a break on interest rate to account for the risk of rising rates 1-5 years out.
Comparison to Fed funds rate, while interesting, is not all that important. Compared to the current rate of inflation (4%) current rates at 6.5-7% are still lower now than a few years ago when they were at 5.5% (and then-inflation at 2%).
Real interest rates are currently pretty low.
Adjustable rate mortgage do not offer enough of a break on interest rate to account for the risk of rising rates 1-5 years out.
Comparison to Fed funds rate, while interesting, is not all that important. Compared to the current rate of inflation (4%) current rates at 6.5-7% are still lower now than a few years ago when they were at 5.5% (and then-inflation at 2%).
Real interest rates are currently pretty low.
Adjustable rate mortgage do not offer enough of a break on interest rate to account for the risk of rising rates 1-5 years out.
Comparison to Fed funds rate, while interesting, is not all that important. Compared to the current rate of inflation (4%) current rates at 6.5-7% are still lower now than a few years ago when they were at 5.5% (and then-inflation at 2%).
Real interest rates are currently pretty low.
Adjustable rate mortgage do not offer enough of a break on interest rate to account for the risk of rising rates 1-5 years out.
Comparison to Fed funds rate, while interesting, is not all that important. Compared to the current rate of inflation (4%) current rates at 6.5-7% are still lower now than a few years ago when they were at 5.5% (and then-inflation at 2%).
Real interest rates are currently pretty low.
Adjustable rate mortgage do not offer enough of a break on interest rate to account for the risk of rising rates 1-5 years out.
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