Home mortage rate direction?

[riptides]

Gentle men, I do not know what China is up to, but rest assured they have a plan. I am a designer of everything from body piercing parts to things used on the space shuttle. I design molds and the parts and I know that some of my customers are paying less for a mold that produces their parts then the mold shops that I design for here in the US can buy the steel for. Having China holding our dept is dangerous.

Not really, one can opt to NOT pay. It is pretty simple.

 

[StanR]

I do not think we will see a big increase in long term rates. Higher rates would slow the already hard hit real estate market. with a ripple effect over the entire ecomony. 98% of the time, bad news is good news for the long term rate market. Usually when there is a major event, rates change immediately. Today rates were in the same basic area they were late week. There are many factors involved but generally in the mid to low 4's. That is in the Texas market with a good borrower. They change a bit state to state.

 

[Ken45101]

Having China holding our dept is dangerous.

I'm not so sure of that. It could make us safer. China doesn't want to make us mad or start a war and risk losing all that money.

Would you risk upsetting someone who owed you trillions of dollars without collateral?

China also has to worry about our devaluing the dollar and paying them back with funny money.

Don't misunderstand. I don't trust the Chinese government. Just sayin', I'm not sure who has who over a barrel.

Ken

 

[two_bit_score]

That's kinda where I am . . on a much smaller scale.:laughing: I bought a little Toro ZTR and the dealer had GE Money finance it at 1.99%. And I've been trying to decide whether to just make the payments or pay it off. It's a 3 year financing and 3 year warranty on it, and I still can't decide which would be best.:laughing:

It would be nice to lock in some low interest financing or even better zero percent and then have interest rates climb on the money you kept in the bank.

Been so long since money in the bank was anything except a cushion or a bank roll to use for a good deal when it comes along that it would be nice to actually get paid some bank interest for a change.

 

[two_bit_score]

I'm not so sure of that. It could make us safer. China doesn't want to make us mad or start a war and risk losing all that money.

Would you risk upsetting someone who owed you trillions of dollars without collateral?

China also has to worry about our devaluing the dollar and paying them back with funny money.

Don't misunderstand. I don't trust the Chinese government. Just sayin', I'm not sure who has who over a barrel.

Ken

If you owe the bank a million dollars and can't pay. It you've got a problem. If you owe the bank ten million dollars and can't pay it the bank has a problem? :confused2:

 

[2manyrocks]

I had a bank lawyer say if a person was going to borrow money, they needed to get so deep in the bank that the bank couldn't do anything to them.

Friend of mine told me today she is covered up in mortgage refi applications.

We have had the Fed easing the money supply and holding down interest rates for quite some time now. How much longer can this go on? Especially now that inflation is rearing its head.

 

[Gale Hawkins]

Two years per the feds today to reverse the stock market slide.:thumbsup: