"Many observers expect that the Federal Reserve, which is making$60 billion in short-term loans available to banks and financial institutions through two auctions this month, will move to cut short-term interest rates for a fourth straight time when the Federal Open Market Committee meets Jan. 29 and 30th. Federal Reserve Chairman Ben Bernanke raised expectations of a rate cut in a speech last week."
This was found on Inman News. Rate cuts will not work when the lender restricts what the consumer has to come to the table with in down-payment. We have been down the rate road before. If we are going to restrict based on credit score then the rate does not matter, there will be a complete segment of the market cut out. It will hurt the refi market when appraisals do not hit. The same ole same ole will not work.
I do not know what will work but we have to come up with something different. If you are like me you have cut and cut budgets and yet more is needed. What has our Trillion dollar government budget cut?
Till Next Time,
Matt Ratcliffe
Team Leader
KWRBV
2700 Earl Rudder Freeway, Ste 2200...Ready to serve you today! Give us a call or come on by. www.kwrbcs.com for all homes in the Brazos Valley, search, then call and let us represent you.
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Something to think about, you do make a good point.
Rate cuts federal government had outs whatever, it is the end of the world as we know it.
Take care!
RJH
Rates cuts will not work as most markets are at a flat or are heading downward in price--which causes many people having to keep their present mortgage, whether it is good or bad because appraiser value does not meet the loan value.
The market itself has to be readjusted somehow. Drastic rate cuts would only help the current buyer market right now. In which case, they would still have to put at lot down if they are not able to prove income and asset and if their credit score is not in the upper 700s.
Still, optimism will help us to prepare for a better market.
The goverment don't give a care. They are notspending their money. We cut our budget because we have to. The goverment just goes to social security when they are a little short.
Maybe rate cuts on their own will not work, but will eventually help spur competition. It will take awhile for lenders to loosen up. They are over reacting to past policies.
The Fed's cutting the rate doesn't make the difference to the average consumer on loan interest rates. Keep your eye on the 10 year bond market to understand what happens with mortgage loans.
It will help the person with an ARM that is readjusting.
I don't see how a rate cut can hurt Buyers or Sellers when classic guidelines are in place.
Seller has equity.
Buyer has cash down.
Buyer has good credit score.
House appraises at or above purchase price.
These people exist. I work with them routinely.
When I work with Buyers who have 20% down and credit scores over 750, why shouldn't they benefit from the best possible rate?