Quote:
Originally Posted by burn_this_city
Whats everyone's thoughts on Bernanke slashing interests rates again??
|
band aid on a bullet hole
the biggest problem on this side of the 49th is the housing market. Todays rate cut on short term treasuries will have no impact on long term mortgage rates, which are dictated by the long bond which in turn is dependent on the state of the economy, which clearly sucks right now
todays rate cut may have some effect on ARM's, but the market had already priced in a 50 basis point cut, so the extra quarter point will have a little but not significant impact. Really, if you can't afford a 8.5% ARM, will you be able to afford a 8.25% ARM if you previous rate was 4.5%?