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Realistbear

U S Interest Rates Begin Soaring - 30 Year Breaches 7%

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Source: Bankrate.com

Loan Type Today Last Week

30 Year Fixed 6.08% 5.90%

15 Year Fixed 5.50% 5.27%

1 Year ARM 4.75% 4.56%

30 Year Fixed Jumbo 7.10% 6.88%

5/1 ARM 5.61% 5.03%

3/1 ARM 5.38% 4.93%

HUGE increases on adjustables and more than 7% on the long term loans. These are very large IR moves and seem to be closely tied to the Fed action. If Ben cuts again US rates may spiral upwards toward 10% which will be the opposite effect that he wants. Its Greenspan's conundrum in reverse.

Interesting that our mortgage rates have been rising too. Libor up again today?

It says one thing: RISK AVERSION. Cut all you like Ben--it ain't going to lower rates. The more you cut the scarier it all seems. A hike might restore faith and settle things down a bit.

Edited by Realistbear

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Source: Bankrate.com

Loan Type Today Last Week

30 Year Fixed 6.08% 5.90%

15 Year Fixed 5.50% 5.27%

1 Year ARM 4.75% 4.56%

30 Year Fixed Jumbo 7.10% 6.88%

5/1 ARM 5.61% 5.03%

3/1 ARM 5.38% 4.93%

HUGE increases on adjustables and more than 7% on the long term loans. These are very large IR moves and seem to be closely tied to the Fed action. If Ben cuts again US rates may spiral upwards toward 10% which will be the opposite effect that he wants. Its Greenspan's conundrum in reverse.

Interesting that our mortgage rates have been rising too. Libor up again today?

It says one thing: RISK AVERSION. Cut all you like Ben--it ain't going to lower rates. The more you cut the scarier it all seems. A hike might restore faith and settle things down a bit.

I guess it is related to the high season for adjusting the ARMs in USA.

Many people are chasing 30 Year Fixed or Jumbos these days...

Hopefully it will accelerate the fall of prices over there.

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It is bizarre, nay shocking, isn't it. The more he cuts, the more money he ploughs in the more the banks put up their lending rates! RB may well be right in that another cut might push lending IRs up towards 10%.

However, isn't this just all PR on the Fed's part - they want to be seen as lowering rates which makes them look the good guys plus it allows the banks a get out of gaol card in lowering further and further savings rates. The banks then do what they want which is to raise lending rates and screw the savers by effectively using the savings to partially help refinance themselves.

I can't see Ben raising IRs for this very reason.

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Source: Bankrate.com

Loan Type Today Last Week

30 Year Fixed 6.08% 5.90%

15 Year Fixed 5.50% 5.27%

1 Year ARM 4.75% 4.56%

30 Year Fixed Jumbo 7.10% 6.88%

5/1 ARM 5.61% 5.03%

3/1 ARM 5.38% 4.93%

HUGE increases on adjustables and more than 7% on the long term loans. These are very large IR moves and seem to be closely tied to the Fed action. If Ben cuts again US rates may spiral upwards toward 10% which will be the opposite effect that he wants. Its Greenspan's conundrum in reverse.

Interesting that our mortgage rates have been rising too. Libor up again today?

It says one thing: RISK AVERSION. Cut all you like Ben--it ain't going to lower rates. The more you cut the scarier it all seems. A hike might restore faith and settle things down a bit.

Couldn't agree more, the "market" collectively says more cuts = more risk, CB's have lost control.

Probably worse than that though will be the rest of the world's reaction to the FED's policy (Oil $110 !!!), March 18th now takes on importance of (maybe to quote you RB) "biblical proportions".

I think we're fast approaching D-Day, there will most likely be an attempt at the mother of all bailouts by the Western CBs, if that doesn't work then that Ladies and Gentlemen will be that.

Edited by lufc

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Source: Bankrate.com

Loan Type Today Last Week

30 Year Fixed 6.08% 5.90%

15 Year Fixed 5.50% 5.27%

1 Year ARM 4.75% 4.56%

30 Year Fixed Jumbo 7.10% 6.88%

5/1 ARM 5.61% 5.03%

3/1 ARM 5.38% 4.93%

HUGE increases on adjustables and more than 7% on the long term loans. These are very large IR moves and seem to be closely tied to the Fed action. If Ben cuts again US rates may spiral upwards toward 10% which will be the opposite effect that he wants. Its Greenspan's conundrum in reverse.

Interesting that our mortgage rates have been rising too. Libor up again today?

It says one thing: RISK AVERSION. Cut all you like Ben--it ain't going to lower rates. The more you cut the scarier it all seems. A hike might restore faith and settle things down a bit.

This is caused by the dumping of US treasuries. Does anybody with money to invest believe CPI? Who would be crazy enough to accept such low yields with inflation soaring? Most remarkable is why it's taken this long.

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This is caused by the dumping of US treasuries. Does anybody with money to invest believe CPI? Who would be crazy enough to accept such low yields with inflation soaring? Most remarkable is why it's taken this long.

Indeed. In the final analysis the market sets the IR. And tha market is saying bullsh*t to the official inflation rates.

Ben should not try to fight the force but go with it. Let IR follow the market and if the market is saying 7% let it be so.

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Indeed. In the final analysis the market sets the IR. And tha market is saying bullsh*t to the official inflation rates.

Ben should not try to fight the force but go with it. Let IR follow the market and if the market is saying 7% let it be so.

I think the fed will start buying them before too long. Anyone familiar with the gold guru Greg Weldon? This is the "monetary Armageddon" he refers to.

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Guest Charlie The Tramp
But cut he will. And quite a few times.

You wanna bet, talk about vested interest. :rolleyes:

Ben should not try to fight the force but go with it. Let IR follow the market and if the market is saying 7% let it be so

Well said RB.

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Indeed. In the final analysis the market sets the IR. And tha market is saying bullsh*t to the official inflation rates.

Ben should not try to fight the force but go with it. Let IR follow the market and if the market is saying 7% let it be so.

Aren't Chancer Darling and Crash Gordon talking up the benefits of 30 year mortgages like a couple of stoogies right now? How much would the market rate be?....10% :lol::lol:

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But cut he will. And quite a few times.

Oh he'll cut alright, maybe end the rate cutting cycle in the next 2 months though and hang around 1.5%

Eventually as inflation becomes more and more dangerous, he will have no choice but to increase, when he increase's, it will not be by enough, real interest rates (as they are now) will still be negative, this will not curb inflation. Likely start Rate rises in q4 2008, post election.

Inflation will not and cannot be controlled until he increases rates above the real rate of inflation and reduces the money supply - not as easy as it sounds. This is the only way there will be deflation, looks like inflation it is then.

HmmmMmmMMmMMmMmMMMMmmmmmmmm I wonder if there i a way of protecting my wealth in an inflationary environment???? Maybe there is but i'm not allowed to talk about it on the main forum. :lol:<_<

Edited by Impartial

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It is bizarre, nay shocking, isn't it. The more he cuts, the more money he ploughs in the more the banks put up their lending rates! RB may well be right in that another cut might push lending IRs up towards 10%.

However, isn't this just all PR on the Fed's part - they want to be seen as lowering rates which makes them look the good guys plus it allows the banks a get out of gaol card in lowering further and further savings rates. The banks then do what they want which is to raise lending rates and screw the savers by effectively using the savings to partially help refinance themselves.

I can't see Ben raising IRs for this very reason.

He will lower rates BECAUSE the banks can use it to rebuild themselves.

the banks would then be able to borrow lower and re-lend higher since market rates would likely go up.

the lowering of rates has had nothing to do with house prices since the credit crunch.

it's the same reason that Britain will drop rates when the crash really hits.

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He will lower rates BECAUSE the banks can use it to rebuild themselves.

the banks would then be able to borrow lower and re-lend higher since market rates would likely go up.

the lowering of rates has had nothing to do with house prices since the credit crunch.

it's the same reason that Britain will drop rates when the crash really hits.

Guaranteed :ph34r:

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He will lower rates BECAUSE the banks can use it to rebuild themselves.

the banks would then be able to borrow lower and re-lend higher since market rates would likely go up.

the lowering of rates has had nothing to do with house prices since the credit crunch.

it's the same reason that Britain will drop rates when the crash really hits.

It won't work unless he buys up all the treasuries too. This kind of bond market action usually precedes hawkish policy. The $ is going down big time!

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  • 292 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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