I checked the interest rates this morning on Yahoo's home page and they increased by .07 on each type of loan.Why did the interest rate increase on 15 and 30 mortgages, even after the Fed cut rate by .50 basis points?
Mortgage rates are long-term debt. Long term debt rates are tied to Treasury securities. If you read about the fed rate cuts you will see that they are cutting the rates on short term loans. These have nothing to do with mortgages.Why did the interest rate increase on 15 and 30 mortgages, even after the Fed cut rate by .50 basis points?
I would not believe what I read. My son is refinancing his house in northern Florida. The rate is 4.72 for a 30 fixed mortgage. Closing costs about $2000. He with have saved over the $2000 in 17 months. This is Bank of America. Each area of the country has different rates.
Unless you have a fixed-rate mortgage, the current mortgage interest rates are very important to deciding how much you should pay every month%26lt;!--therefore it is always a good idea to keep an eye on what the rates are doing. If interest rates should rise, so will your monthly payments and again, if interest rates were to fall, so would the amount you would have to pay.
http://mortgages-finance.awardspace.com/Mortgage-Rate-Compare.htm
Monthly repayments made on your mortgage and the amount that was borrowed, is determined by current mortgage interest rates. Different--%26gt;companies offer different interest rates so it is a good idea to shop around for the best deal before settling on one particular lender.
Competition, when one bank does it others will follow. The fed rate and the mortgage rate market aren't hand in hand. It should lower because of competition but not because of the fed cut. More money available will make money cheaper to get and eventually that may affect all loans.
My equity line has been affected, it is know a lower % than my fixed. My adjutable is now 5.95 and will drop again due to the recent cut.
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