Adjustable rate mortages-the bubble will pop!

[davebg 0]

:highfive: to my fftoday boys who have fixed rates like myself.

30 yrs fixed @5%...no points.

[mighty_thor 115]

6.00% fixed (jumbo) two years ago. The banker gve me a when i told him i wanted a fixed rate as opposed to an ARM. I just told him I was planning on raising my family in this house so why would i want to get focked in 5 to 7 years.

[proninja 0]

why will tomorrow be any different than the last 16 times that they raised rates a quarter point?

There's mumblings he could be raising the prime rate a half point this go-around. Also, it typically takes 6-8 months for the interest rate changes to make a difference in the economy, so we don't really know what kind of effect this is going to have because we still don't know what we're dealing with from the most recent rate hikes. Rumor was we were getting to the end of the rate hikes, but then a crappy inflation report came out, and Bernanke doesn't want the reputation of an inflation wimp (which some have suggested) so he's still probably going to keep raising rates.

 

I think I just got hit by a piece of the sky