Keith Gumbinger
Keith Gumbinger
borrow change consumers couple fed might raises rates
There's no way for consumers to borrow more cheaply. But that might change if the Fed raises rates a couple more times.
aware five higher home interest likely money rates reality road save seven somewhat three within
Someone who will be out of their home within five years to seven years can save some money with an ARM. But you have to be aware of the reality that interest rates are likely to be somewhat to significantly higher in three years, five years, 10 years down the road from today.
last low months rates
If you've refinanced in the last 18 months or two years, this movie's a rerun. Rates aren't at compellingly low levels.
cuts economy fed investors mortgage rates
Mortgage rates come down when fixed-income investors think the economy is slowing, not because the Fed cuts rates.
cuts likely mortgage rates succeed
If the Fed's cuts succeed in stimulating the economy, then mortgage rates are actually likely to rise,
borrowers budget buy encouraged invest loans money paid people product save stretch value
These loans can be of value for people who want to save or invest the money they would have paid in principal, ... Unfortunately, the way the product has been pitched, borrowers have been encouraged to stretch their budget to buy more house.
borrow buyers cash flush home layer markets minimum money mortgage pay possible risk top value
Mortgage markets have been so flush with cash that home buyers are able to layer one risk on top of the other. It's possible to borrow more than the value of the home, put in no money of your own and pay a minimum monthly payment.
fixed insulated longer
The longer the fixed rate, the more insulated you'll be.
less mortgage pay ultimately
If you're making a pre-payment on your mortgage principal, ultimately you'll pay less interest,
baton current expectation greenspan left pick
The current expectation is that he'll pick up the baton where Greenspan left it off.
borrowing costs influence mean stop
Does that mean (consumers will) stop borrowing because it costs them another $5 a month? Probably not. It may influence decisions. I don't think it halts decisions.
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For some people a home equity line of credit is a brand new shovel for digging themselves further into debt.
increased pain point quarter soon start
A quarter point here, a quarter point there, and soon you start to feel the pain of significantly increased monthly payments,
activity catch chance home prices trying
They're trying to make home prices more expensive, so some of this speculative activity will decrease, and incomes will have a chance to catch up.