Posted by JT - IN on June 22, 2001 at 09:33:06:
Any move by the Fed is not likely to have any positive effect on mortgage rates, as Fed Funds rate has NO impact on long term mtg rates. Conversely, if the FED would happen to raise rates, which I personally do not see happening, the mortgage mkt would react negatively.
Sooooo, the FED isn’t going to do much to help you, but could hurt you, so, as you have already realized, the best thing to do is lock-in at these already respectable rates of 6.75 to 7% on mtg rates. This should be enough incentive, considering you are now at 8.75%. Seize this opportunity before it is too late.
Just the way that I view things…
JT - IN