Fed cuts interest rate by 3/4 point

[TDiddy]

http://money.cnn.com/2008/01/22/news/economy/fed_rates/index.htm?cnn=yes

How long for this to trickle down to banks and credit unions - overnight? few days?

[bamachem]

my CU has already dropped their mortgage rates today. typically, for the full effect, it can take quite a while - weeks or even months in some cases. this was such a drastic change, i think some of it will be in a matter of days, but the full effect will take longer.

[TDiddy]

Thanks Andy. We got our mortgage at 5.5% a few years ago, but I'd certainly be up for a refinance if the rates fall enough.

[MTL_4runner]

Wow, I'm not sure even the Fed has any idea how this will really affect the economy.
Hopefully it won't serve to make the current situation any worse.

[Seanz0rz]

a 3/4 change in rates is a sign of desperation. the economy looks bleak, and as a college student looking to enter the workforce in the next few years, my options are scarce. if i got hired in a down turn, i would be the first one to be let go.

kinda scary, but i hope this helps,

[MTL_4runner]

a 3/4 change in rates is a sign of desperation. the economy looks bleak, and as a college student looking to enter the workforce in the next few years, my options are scarce. if i got hired in a down turn, i would be the first one to be let go.

kinda scary, but i hope this helps,


Hang in there.....I remember the situation being similar back in 89-92 with the job market crappy and the recession in full bloom, but it bounces back. You also have to remember the baby boomers aren't getting any younger and will leave some pretty big holes to fill in the job market. It may take a little longer to find a job after you graduate but being patient and persistent usually gets you where you want to go.

[Seanz0rz]

oh of course! just not nearly as comfortable as it would have been say in 1998, though if i had a job then, i probably would have lost it in the dot com bubble burst.

still looks pretty bleak out there for those who cant set themselves apart from the herd.

[calrockx]

if you can't set yourself apart from the herd, you've got bigger problems...

[xonetruthcrewx]

^^^^^
Fuc*in' A man. :clap:

[Bob98SR5]

a 3/4 change in rates is a sign of desperation. the economy looks bleak, and as a college student looking to enter the workforce in the next few years, my options are scarce. if i got hired in a down turn, i would be the first one to be let go.

kinda scary, but i hope this helps,


i think things will turn around for you by then, sean, dont worry. and typically, they keep good grunts and cut out middle management first

[Good Times]

i think things will turn around for you by then, sean, dont worry. and typically, they keep good grunts and cut out middle management first


so true, so true...

[reggie 00]

Nice Avatar Lance.

Someone needs to make Bob one too.

[Robinhood4x4]

The rates through my employee discount already dropped about 1/2% so I've got two questions.

Will the rates drop more as a result of the 3/4% fed drop?

Will the fed drop rates again?

[Bob98SR5]

The rates through my employee discount already dropped about 1/2% so I've got two questions.

Will the rates drop more as a result of the 3/4% fed drop?

Will the fed drop rates again?




will the rates drop at your financial institution? probably, but it all depends on your financial institution, what type of program you are under, your credit score, etc, etc. usually if you are refinancing, you look elsewhere first and then come to your current institution and say "match it, beotch"

will the rates drop? depends. its anybody's best guess, but the fed will typically drop the prime rate (the lending rate that the banks buy from the govt) when the economy is in a downturn. credit goes down, the economy (people) typically start to buy/finance more things. this is very, very generalized, but thats the rationale

i am also looking to refi if the #s make sense.

[Seanz0rz]

im not worried. i have some unique skills ive developed over the years. i wont have trouble finding a job, its just finding a job i like and want that is the big question.

[MTL_4runner]

will the rates drop at your financial institution? probably, but it all depends on your financial institution, what type of program you are under, your credit score, etc, etc. usually if you are refinancing, you look elsewhere first and then come to your current institution and say "match it, beotch"


X2 ....especially the last part :laugh:

It is more than likely that the Fed will need to continue to cut rates and mortgage rates will dip further but timing the bottom is like timing the stock market. If you can do that well, you don't need to worry about timing your mortgage refinancing rate, right?! The bottom line really is that you should refinance when the numbers tell you it makes sense to do so (ie the money you'd save in the time you'll be in the home > the money spent on refinancing).

[Robinhood4x4]

(ie the money you'd save in the time you'll be in the home > the money spent on refinancing).
What if it's free or nearly free? Through my company, they drop most (maybe all?) of those fees. If it's free, then theoretically I can refinance every time the rate drops, but I know that's not going to happen.

[MTL_4runner]

What if it's free or nearly free? Through my company, they drop most (maybe all?) of those fees. If it's free, then theoretically I can refinance every time the rate drops, but I know that's not going to happen.


Then sure, why wouldn't you just keep doing it?! For most people the refinancing can cost up to a few thousand dollars each time you refinance. If they are waiving that, then absolutely go for it.