Fed Raises Rate to 4.5%, Drops `Measured' to Cap Greenspan Era

General Real Estate Investing
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Fed Raises Rate to 4.5%, Drops `Measured’ to Cap Greenspan Era

http://quote.bloomberg.com/apps/news?pid=10000006&sid=anmvZa5kak4Q&refer=home

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There’s another payment increase in everbody’s prime based loans! Just when you thought that you had your budget under control. :-\

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On the flip side it will be driving down prices in most areas. Of course if you get stuck with a fixed rate you’ll have to eventually refi when the rates drop again but hey, you can’t have super low interest rates and super low prices at the same time…just doesn’t work out for us like that. :frowning: >:(

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The next Fed Meeting is on March 28th and they are expecing the new Chairman Ben Bernanke to raise rates again just so that he can flex his muscle. He has been accused of being a little less aggressive so he is going to come out swingin for the first time.
So for the adjustable rate mortgage holders…hang on a little longer.
Help is coming.

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Too bad for the folks who didn’t have rate locks or currently have ARMs. I wonder if they’ll continue raising rates throughout the year.

Time to refinance to get a permanent loan.

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I don’t have anything to base my opinion on…I am not a financial expert…but I don’t expect rates to drop anytime soon.