Quote:
Originally Posted by rustomatic
A quarter of a percent increase in mortgage rates deters no one.
|
Not to argue with you.... but you don't apparently understand the correlation of FED rates and the subsequent market rates that it affects.
A "quarter point" rise won't affect home sales could possibly be correct - except that real actual mortgage rates will go up MORE than that... and since the FED is talking about possibly raising rate FOUR TIMES this year - that would be ONE full point this year alone....
The FED FUNDS rate affects every single thing you do.... food prices - cost of doing business - cost of borrowing - credit card rates. What happens - eventually - your car payment goes up - your insurance costs go up - your food prices rise - and your mortgage payment rises. That creates INFLATION - which then causes businesses to have to increase their prices to cover the rising costs of everything they do... Rates are incredibly important.