tamilraj2003
New member
What effect will it have on Irvine market?.....
http://news.yahoo.com/fed-under-pressure-act-world-markets-swoon-050130864.html
http://news.yahoo.com/fed-under-pressure-act-world-markets-swoon-050130864.html
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Fed's 2 year interest freeze - Effect on Irvine Market?....
- Thread starter tamilraj2003
- Start date
NEW -> Contingent Buyer Assistance Program
Fed interest has an significant impact on mortgage rate, but at the current level it does not guarantee the mortgage rate in this level for next two years. Unless QE3 is coming, otherwise mortgage rate is going up since Fed rate can not go any lower.
Mortgage rate is not the same as the interest rate. Currently lower mortgage rate is artificially made by Fed through QE2. Once QE2 is done, the rate will go up to the level it is supposed to be unless Fed does QE3 to bring mortgage rate level down. Please take look historical data for QE1, so you may understand how it works.
QE2 ended June 30th.
Yeah, this exactly. It was after QE2 ended that rates hit YTD lows.
tamilraj2003
New member
wouldn't it disadvantage for TIC? who is been using the scare tactics of 'you know rates might go up soon'? I know couple of my friends just bought, just thinking the interest rates might go up. Now people know the rates are going nowhere for next 2 years, and could pull the trigger at their comfort time, rather than rushing? May be it is just me, even if TIC doesn't reduce price, they have to throw in incentives to make the listings attractive to buy. No?
tamilraj2003 said:What effect will it have on Irvine market?.....
http://news.yahoo.com/fed-under-pressure-act-world-markets-swoon-050130864.html
Fed interest has an significant impact on mortgage rate, but at the current level it does not guarantee the mortgage rate in this level for next two years. Unless QE3 is coming, otherwise mortgage rate is going up since Fed rate can not go any lower.
First, even with the 2 year lock rates can still go up if the economy starts to recover. However, if the economy starts doing worse (very likely) then you'll see rates go lower. Second, iPac and any other builder will likely tell people to buy now because of rate/price/you-name-it will go up or get worse or something. They are going to say everything they can to get you to buy. Thats just how salespeople are...
Nous said:First, even with the 2 year lock rates can still go up if the economy starts to recover. However, if the economy starts doing worse (very likely) then you'll see rates go lower. Second, iPac and any other builder will likely tell people to buy now because of rate/price/you-name-it will go up or get worse or something. They are going to say everything they can to get you to buy. Thats just how salespeople are...
Mortgage rate is not the same as the interest rate. Currently lower mortgage rate is artificially made by Fed through QE2. Once QE2 is done, the rate will go up to the level it is supposed to be unless Fed does QE3 to bring mortgage rate level down. Please take look historical data for QE1, so you may understand how it works.
villiagepeople
New member
lcms2002 said:Once QE2 is done, the rate will go up to the level it is supposed to be... Please take look historical data for QE1, so you may understand how it works.
QE2 ended June 30th.
villagepeople said:lcms2002 said:Once QE2 is done, the rate will go up to the level it is supposed to be... Please take look historical data for QE1, so you may understand how it works.
QE2 ended June 30th.
Yeah, this exactly. It was after QE2 ended that rates hit YTD lows.