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Thread: Fed cuts interest rate for banks, but banks raise interest rates for borrowers ...

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    Banned Melonie's Avatar
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    Default Fed cuts interest rate for banks, but banks raise interest rates for borrowers ...

    from bankrate.com

    type of loan this week last week

    30 Year Fixed 5.79% 5.61%
    15 Year Fixed 5.39% 5.18%
    1 Year ARM 5.58% 5.48%
    30 Year Fixed Jumbo 6.74% 6.60%
    5/1 ARM 5.71% 5.51%
    3/1 ARM 5.58% 5.36%

    thus while the Fed funds rate was dropped by .25%, mortgage loan rates have gone UP by .2% or so. It would appear that the additional losses handed to mortgage investors via the 'subprime bailout plan' has already resulted in all new homeowners helping to make up for their losses !

    However savings account / CD rates PAID by banks have dropped in the past week ... with the exception of super shaky banks and finance companies who are desparate to attract additional cash deposits at any cost.

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    Featured Member scorpio's Avatar
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    Default Re: Fed cuts interest rate for banks, but banks raise interest rates for borrowers ..

    duh, short term bank rates have nothing to do with mortgage rates!

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    Default Re: Fed cuts interest rate for banks, but banks raise interest rates for borrowers ..

    Yup, Emigrant and ING just dropped their rates. Mortgage rates are determined by a different index. That sucks, all of my clients were so proud of all of their money market interest rates even though I told them it probably wouldn't last.

    A case for CD's.

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    Default Re: Fed cuts interest rate for banks, but banks raise interest rates for borrowers ..

    ^^^ well, at the bottom of everything is the interest rate curve. Longer term CD's or bonds can be a very good investment AFTER a firm uptrend in long term interest rates is in place.

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    Default Re: Fed cuts interest rate for banks, but banks raise interest rates for borrowers ..

    Quote Originally Posted by scorpio View Post
    duh, short term bank rates have nothing to do with mortgage rates!
    The way the MSM kicks up dust about The Fed changing rates one would think it directly effects debt consumers. Ha!

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