Posted by Missy_Lulu on 5/23/06 11:14pm
Msg #121858

Interest Rates Rising

I don't watch or read much news other than Notary type articles on the net so I may be telling you something you already know. My banker told me that this last 25 points in which interest rates went up was not scheduled. It was scheduled for June. Does this mean interest will take another hike in June? And there was one scheduled for the end of summer. According to local bankers things have slowed dramatically, nothing is moving.

I hate to be the bearer of bad news but brace yourselves, this could be a long haul. Diversify any way you can to stay afloat. We provide a very important service to our country and I believe it is worth doing whatever it takes to stay afloat. When e-notarization comes into our neck of the woods in another year, we will need the experienced NSA to be available to take that extra step into the e-mortgage world. It will be worth it if we can stick it out.
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No content of my post should be construed as legal advice. I am not an attorney.

Post copied from Midwest Notary Association Forum (www.mwna.net)

Reply by Kevin/Ct on 5/24/06 7:02am
Msg #121893

If you are talking about the short term interest rates which the Federal Reserve has been consistently boosting for the past 16 months, it is expected to continue. There was some speculation that the last rate hike would be the end of it, but the most recent economic indicators indicated that the economy is strong, inflation remains a threat and that inflation needs to be curbed with further increases.

Reply by LynnNC on 5/24/06 8:29am
Msg #121902

Does it really make much difference?

I think the ride based on borrowers refinancing to obtain a lower interest rate is over, except for those who are switching to a fixed rate due to the increase in their adjustable rate loans. We will always see people refianacing to get cash out and to consolidate debt.

Mortgage interest rates would have to rise to double digits for borrowers to not want to reduce interest on credit card debt through refinancing or a HELOC. Even a 10% mortgage interest rate would be better than 15 - 24% on credit card debt!

Reply by Missy_Lulu on 5/24/06 9:58am
Msg #121934

Re: Does it really make much difference?

Well business has slowed in my area and I'm not in a saturated area. So there has to be another reason and according to my banker, things have dramatically slowed. I agree people will still find benefit in consolidating credit card debt and switching to a fixed rate in lieu of the increased interest rates.

Reply by Kevin/Ct on 5/24/06 6:41pm
Msg #122097

Re: Does it really make much difference?

The bright side is that the news reported this morning that new housing sales were up 5% for April, 2006..higher than expected.

Reply by MichiganAl on 5/24/06 8:40pm
Msg #122127

Re: Does it really make much difference?

There will always be a need. Rising rates don't bother me.