Fed Attacks Mortgage Rates: 4 Things to Know

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Feds cut the rate, but will it reach to consumers, or banks will take advantage of it. It is been happening. When you see the rates are down and you want to refinance, even when your credit scores are above 800, still can not get the rate to 5%. Banks eat the profit and consumer don't get the benefit. I thinks Gov. should look into it, so if people can get benefit from it, economy should improve. I have seen, it does not pass to consumers. I have called the banks, rate is always higher.
Thanks.

K johnson of NJ 11:38AM March 19, 2009

I seem to be one of the few in the market for a home right now, I just relocated for my job and am looking for a new home, but I'm honestly concidering waiting to purchase until after Obama is in office in case any home buying incentives get pushed through congress or these actions succeed in pushing down rates. I know a few others who relocated with me that plan to do the same. If the government wants buyers to enter the market they need to pass whatever incentives they are going to pass and assure us that is all we are going to get otherwise I plan to wait for the dust to settle

chess of TX 5:16PM November 25, 2008

A substantial drop in long term interest rates would help solve some of the banks mark to market problems. It would encourage a mass refinance of the existing loans that "qualify for refinancing" and pay off of a substantial amount of existing mortgage backed securities. (many of which have questionable underwriting) This would quickly reduce the effective amounts in mortgage backed securities subject to heavy mark to market becaust the underlying quality of the loan underwriting is unknown. The loans that did not pay off could represent a smaller amount of sub standard questionable mortgage loans and at least identify and partially isolate the borrowers that shoud be rated lower. It would be helpful in the maximum amount of the FNMA/FHLMC loan could be moved up to $600,000.00

Robert Duncan of TN 4:50PM November 25, 2008