Posted by Charles_CA on 8/10/05 1:44pm
Msg #58087

Prime rate up another quarter point

Here we go again. The Fed announced another quarter point increase just as everyone suggested they would. Look for the lending process to come to a screeching slowdown as soon as the Locked loans are aout of the pipeline. The last few days I have been seeing someof the lenders revising their rates several times a day.

Best regards,
Charles

Reply by newlysmomva on 8/10/05 2:36pm
Msg #58106

Real estate will go down the tubes if the rates continue to go up.......late 80's I recall.

Reply by BrendaTx on 8/10/05 2:36pm
Msg #58108

Yep...Charles is right. I am a positive kind of gal...

but, the interest rate is going up and we have to face the facts...being optimistic and being realistic must find a happy meeting place.

This month may be my biggest yet...but there will be less refi loans within a very short amount of time.

Texans especially will feel the hit since the notary cannot do a HELOC in a home setting. Refis are our bread and butter.

Back to the salt mines...gotta go while there's still salt!

Reply by Bethy-CA on 8/10/05 2:37pm
Msg #58109

I'm wondering if this is why we've been seeing some of the signers here mention how this has been a busy first of the month for them, with people knowing the fed was going to most likely raise the rate again.

Reply by PA Notary II on 8/10/05 3:41pm
Msg #58128

Charles: Am I wrong or was it actually the Fed rate that went up. The Prime rate isn't set by the Fed, but by individual banks. Prime, (I thought) was the rate the consumer pays while the Fed rate is what the banks pay for borrowing from each other.

Reply by InkWerk/CA on 8/10/05 4:15pm
Msg #58140

The benchmark you want to watch is the 10yr T Note

FWIW...The 10 year treasury note index (TNX) has gone down a few times while the fed has been increasing the key short term interest rate. Even though the fed has increased rates over the past year, we have just gone through a drop in mortgage rates in june which mirrors the 10 yr treasury notes movement and not the feds. It looks like the TNX is on a slow uptick so make your own assumptions as its anybodys guess at this point. Back to my cave I go.

http://finance.yahoo.com/q/bc?s=%5ETNX&t=my&l=on&z=m&q=l&c=

Reply by Charles_CA on 8/10/05 4:56pm
Msg #58154

You are quite right PA Notary

The Federal Reserve Bank raised it's rate a quarter of a point yesterday. The Prime Rate is defined as "The Prime Rate is the interest rate charged by banks to their most creditworthy customers (usually the most prominent and stable business customers). The rate is almost always the same amongst major banks. Adjustments to the prime rate are made by banks at the same time; although, the prime rate does not adjust on any regular basis. The prime rate of 6.5% has gone into effect today as a result of the raising of the Federal Reserve Rate. It is a good point to make, Thanks.

Also the Prime and the Fed are not the only rates we watch for loans some banks like to use the LIBOR which is the London Inter-Bank Offered Rate and has little to do with US economy. Probably of most interest to Notaries is the mortgage rate which has risen for 5 consecutive weeks. Again today some of the mortgage companies I work with have revised their rates several times today.

Reply by Kevin Ahern on 8/11/05 5:11am
Msg #58241

The Federal Reserve raised the short term rate charged by one bank to another. The long term mortgage rates remain low. Greenspan testified before Congress recently that he was not certain why the long term rates are still low while the short term rates are rising. Even if the refis dry up sales remain strong

Reply by BrendaTx on 8/11/05 6:45am
Msg #58243

Re: Prime rate up another quarter point


*The Federal Reserve raised the short term rate charged by one bank to another. The long term mortgage rates remain low. Greenspan testified before Congress recently that he was not certain why the long term rates are still low while the short term rates are rising. Even if the refis dry up sales remain strong *

Agreed.

Reply by TitleGalCA on 8/10/05 2:56pm
Msg #58115

Thx Charles for the info you post here...

from your perspective in the financial field and as RE agent. It's always timely!

Reply by Charles_CA on 8/10/05 4:58pm
Msg #58155

The pleasure is all mine TitleGalCA,

Its always nice to hear form you. Best regards,