<< It's definitely a positive jolt, since it effectively pushes down long term rates.>> Short term anyway.
It certainly gave me a little boost as I locked in 6.0% w/ 0 points yesterday on my ongoing refi.. Still, I wonder if we're getting to the point of diminishing returns where there are only so many folks out there left in a position to buy, build, or refi. (Like the market top in Mar. 2000?). After all, when I started my refi. about a month ago, interest rates were right where they are now, and actually went up 0.25 points, roughly coinciding with the recent market spike. Where I live in No. Cal., we've pretty much been insulated from the downturn, witness the trouble I've had getting the attention of good contractors all summer for some remodeling work. Now, the housing market is slowing some even here.
Ed. Wash. Mut. is down 10% today.
In one big bang, the Feds have now eliminated one of their dials on the controls of the economy as we go into deficit spending. Not sure the tradeoff will be worth it.
Jim |
