Bankrate.com
30 yr fixed mtg
Today 5.93%
Last Week 5.98%
Interesting, why is the cost of borrowing money “decreasing”?
“why is the cost of borrowing money “decreasing”?”
Not at our bank (Wachovia). We locked in our mortgage last Tuesday at 5.875% and it went up several hours later. It hasn’t gotten back down to that rate yet. I watch it daily!
Simple there is no money.
cost of borrowing money “decreasing”?
Lots of money available.
They’re taking their cash from stocks.
Not in all markets. Look at spiking LIBOR rates, and rates that US Domestic Governments have to pay in the short term fixed income markets. In those markets, credit is very, very scarce, and if you can get it, very expensive.
Because money is flooding into the bond market, as the price of bonds goes up the yield goes down.
Was talking to an economist who is also a director of a small, well-run CA bank, and she said they had a run . . . of money INTO their bank, in a flight to safety.
Rates for borrowing being set by politics rather than set by the market, are the cause of this entire fiasco.
Bankrate.com
30 yr fixed mtg
Last Week 5.98%
Today 5.93%
Interesting, why is the cost of borrowing money “decreasing”?
Simple, the banks are trying to sell loans to people and businesses with good credit.
The first hint of this came in June/July. We were offered a 3.99% per year loan with no time limits to pay it off. We used it to pay off my lease on my fairly new Ridgeline. Now, we own the Ridgeline with basically the same payment. I had intended to buy the Ridgeline when my lease was up. Now the next payments are reducing the debt on that excellent loan.
The samething is happening with our bank and mortgage company re lines of home credit. We will probably be needing a new roof and should be able to lock in a great a great home equity line fixed rate.
People with good/excellent credit ratings will get excellent new loan offers or can get them by shopping around while those with not so great credit will not get new loans.
Treasury Bond prices are being bid up as investors look for a safe haven in US Teasuries. This causes the yeild to drop.