Comments on: Fed Cuts Rates by .25% – Mortgage Rates Continue on Roller Coaster Ride http://www.ptmortgage.com/blog/2007/12/11/fed-cuts-rates-by-25-mortgage-rates-continue-on-roller-coaster-ride/ Illinois Mortgage Rates - Rants, Raves and Consumer Education from a long time Chicago, IL Home Mortgage Banker. We Lend in All 50 States. Thu, 11 Mar 2010 08:17:12 -0700 http://wordpress.org/?v=2.9.2 hourly 1 By: Chicago Real Estate Marketing and Sales by Dave Weiss http://www.ptmortgage.com/blog/2007/12/11/fed-cuts-rates-by-25-mortgage-rates-continue-on-roller-coaster-ride/comment-page-1/#comment-14 Chicago Real Estate Marketing and Sales by Dave Weiss Fri, 14 Dec 2007 05:01:50 +0000 http://www.ptmortgage.com/blog/2007/12/11/fed-cuts-rates-by-25-mortgage-rates-continue-on-roller-coaster-ride/#comment-14 <strong>Fed Lowers Rates, But Misses Expectations</strong> The Fed lowered rates as we expected. The markets went into a tizzy anyway, saying the quarter point reduction was not enough, and the expectation was a 50 basis point cut. What will this mean for interest rates? It's hard Fed Lowers Rates, But Misses Expectations

The Fed lowered rates as we expected. The markets went into a tizzy anyway, saying the quarter point reduction was not enough, and the expectation was a 50 basis point cut. What will this mean for interest rates? It’s hard

]]> By: The Mortgage Guy http://www.ptmortgage.com/blog/2007/12/11/fed-cuts-rates-by-25-mortgage-rates-continue-on-roller-coaster-ride/comment-page-1/#comment-13 The Mortgage Guy Thu, 13 Dec 2007 17:02:36 +0000 http://www.ptmortgage.com/blog/2007/12/11/fed-cuts-rates-by-25-mortgage-rates-continue-on-roller-coaster-ride/#comment-13 I agree with your general assessment of the rate environment. What borrowers should also be aware of is that even if treasury yields go lower, the spread between them and mortgage rates can widen due to mortgage quality deterioration. This can negate the effects of a falling rate environment in whole or in part. Add that to falling values which can be the cause for needing mortgage insurance and you have two very good reasons to act now, assuming you have a sensible loan on the table. This is not a time to be greedy. Greed is one of the reasons for the mortgage meltdown. Greed on just about everyone's part, from the borrower to the end investors, as well as all the players in between. I agree with your general assessment of the rate environment. What borrowers should also be aware of is that even if treasury yields go lower, the spread between them and mortgage rates can widen due to mortgage quality deterioration.

This can negate the effects of a falling rate environment in whole or in part. Add that to falling values which can be the cause for needing mortgage insurance and you have two very good reasons to act now, assuming you have a sensible loan on the table.

This is not a time to be greedy. Greed is one of the reasons for the mortgage meltdown. Greed on just about everyone’s part, from the borrower to the end investors, as well as all the players in between.

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