Feds drop rate...

#51
pmclaine said:
Sad, but that is the crack the Fed is asking you to smoke.

Our govt has a spending problem and I guess misery loves company.
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As much as I keep eyein' up all those big houses getting built around here and all the fancy pickups in the driveways, I'm gonna decline taking the hit on that crack pipe this time around.

The wife's car needs replacement, but that was already planned as a cash purchase and I think we'll wait for prices to do another 2009-like drop.

If someone was offering up 1.9% financing on Class 3 stuff and next-day clearance of Form 4s, well, then I might engage in some economic stimulus.
 
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#52
E. Bryant said:
As much as I keep eyein' up all those big houses getting built around here and all the fancy pickups in the driveways, I'm gonna decline taking the hit on that crack pipe this time around.

The wife's car needs replacement, but that was already planned as a cash purchase and I think we'll wait for prices to do another 2009-like drop.

If someone was offering up 1.9% financing on Class 3 stuff and next-day clearance of Form 4s, well, then I might engage in some economic stimulus.
Click to expand...
Yes please on that “next day clearance on Form 4s”
 
#55
E. Bryant said:
As much as I keep eyein' up all those big houses getting built around here and all the fancy pickups in the driveways, I'm gonna decline taking the hit on that crack pipe this time around.

The wife's car needs replacement, but that was already planned as a cash purchase and I think we'll wait for prices to do another 2009-like drop.

If someone was offering up 1.9% financing on Class 3 stuff and next-day clearance of Form 4s, well, then I might engage in some economic stimulus.
Click to expand...


With the expected 1.5 million people expected to die any day now the used car market prices should be bottoming.

Just have it towed to your house and leave it in the driveway with the windows open to air out.

Shit I dont now how I missed the good deals with the 150 million gun deaths since 2008 Joe Biden claims occurred.
 
#59
hookedonbrass said:
2.875 locked in for a 30y last week.

(we started the home buying process way before this COVID-19 shit. it just so happened that when we reached 30-days out from closing and it was time to lock in a rate- they dropped)
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Fucking "Profiteer"!

1584364492463.png
 
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#67
just for the ones who don't 100% understand all this (me) would it be a smart move to refi my home? or sell? built it a couple of years ago and had thoughts on selling to rebuild but with not understanding the risks currently, would I be better to sell or would I benefit on a refinance? current rate is %3.50
 
#68
good luck selling your house right now...

ask me how I know...

Best bet is to refi, or at least lock in a rate, usually good for 30 days. In 30 days the picture will be much more clear.
 
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#69
Dombern34 said:
just for the ones who don't 100% understand all this (me) would it be a smart move to refi my home? or sell? built it a couple of years ago and had thoughts on selling to rebuild but with not understanding the risks currently, would I be better to sell or would I benefit on a refinance? current rate is %3.50
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Whats your local market like?

My markets hot but replacement housing would have me moving away to a cheaper area.

That would be acceptable if life circumstances were changing but Im still working still have to get kids through school.

If you are in a hot market looking to sell because you are transitioning to a new life than maybe the low rates would provide you with hungry buyers with access to cheaper cash.

Than again if Covid becomes a real thing or people are actually panicked than there may not be buyers regardless of the rate.

Im more glass half full.
 
#70
pmclaine said:
Whats your local market like?

My markets hot but replacement housing would have me moving away to a cheaper area.

That would be acceptable if life circumstances were changing but Im still working still have to get kids through school.

If you are in a hot market looking to sell because you are transitioning to a new life than maybe the low rates would provide you with hungry buyers with access to cheaper cash.

Than again if Covid becomes a real thing or people are actually panicked than there may not be buyers regardless of the rate.

Im more glass half full.
Click to expand...


housing market here is on fire, houses in my neighborhood are "under contract" within in the same week they are listed. the prices range from 225-330K where I'm located.

I don't have any kids and not married, so it's more of a financial move if anything. due to the "booming economy" my house gained equity over night it seemed and I just hate to lose all that if economy takes a shit.
 
#71
What was true 2 or 3 weeks ago in the housing market, is not the same today. Im not saying real estate has lost any value, but right now, nobody is doing shit. I think nobody is REALLY talking about the economy going down the shitter because its an unknown right now. This could be a 2-4 week pause and then things bounce right back or we could be in for a lot of pain for several years.

But right now(as in the next 2-4 weeks) isnt the time to put a house on the market as its likely to sit simply because nobody is doing anything at all right now.

Unless you want to try to fire sale your house, which it doesnt sound like you are trying to do that. There are ALWAYS bargain hunters out there for houses that are way under priced.
 
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#72
Dombern34 said:
housing market here is on fire, houses in my neighborhood are "under contract" within in the same week they are listed. the prices range from 225-330K where I'm located.

I don't have any kids and not married, so it's more of a financial move if anything. due to the "booming economy" my house gained equity over night it seemed and I just hate to lose all that if economy takes a shit.
Click to expand...


Well if you intend to stay in the same area consider that who you buy from has similar motivations to you.

They wont be selling at a loss.

If you are looking to "upgrade" in your existing area and expected to still be in debt than if your market is actually functioning right now what you could hope to do is sell yours for top dollar than go house poor by buying bigger and enjoying rates plus or minus 3.

My area is stupid, within 10 miles of Boston.

Ive lived in the same house since 1974.

My future goal is to sell into a hot market like a Viking pillaging an English church than go be conservative someplace it will be appreciated.

but thats ten years from now.
 
#73
I finished a 15 year 3.00% refinance in late February. If the rates get under 2.5% I’ll do another. I was 2 years into a 30 year at 4.00%, but this refi will save us a bunch of interest. The original plan was an extra $500/mo in principal on the 30 year, taking our interest from $267K to 167K and the mortgage down to 20 years. The 15 year gets our total interest down to $115K and paid off 3 years sooner. Better.com was awesome to deal with on my refi. Fees were low and their online process was easy. I rolled nothing into my loan and paid under $500 in fees, they didn’t even do an appraisal which saved me $550.

For those considering refi, if you’re on a 30 year loan and only have 9 years left, do some sharp pencil exercises to see if you’ll really save on interest since you’ve paid the lion’s share so far. I want to pay my house off ASAP, never take any equity out of it.

i usually watch rates on NerdWallet.com. Here is their most recent chart, looks like rates are up after bottoming a couple weeks ago.
 

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#74
pmclaine said:
Well if you intend to stay in the same area consider that who you buy from has similar motivations to you.

They wont be selling at a loss.

If you are looking to "upgrade" in your existing area and expected to still be in debt than if your market is actually functioning right now what you could hope to do is sell yours for top dollar than go house poor by buying bigger and enjoying rates plus or minus 3.

My area is stupid, within 10 miles of Boston.

Ive lived in the same house since 1974.

My future goal is to sell into a hot market like a Viking pillaging an English church than go be conservative someplace it will be appreciated.

but thats ten years from now.
Click to expand...
I did an internship in college heading into Bwostin every day from Woburn....drivers whew! What a summer though damn did I have fun, work hard and learn a lot. You gonna stay in the NE?
 
#75
8pointer said:
I did an internship in college heading into Bwostin every day from Woburn....drivers whew! What a summer though damn did I have fun, work hard and learn a lot. You gonna stay in the NE?
Click to expand...

I like heat and I like ocean.

My wife would be happy with those two constants.

Lots of great stuff up here but costs/politics blow.
 
#76
Talked to my banker today. He said the rate that i locked in last week at 2.825% was still better than it is today even with the fed dropping to .25%. I'll keep it moving with 2.825%
 
#78
I submitted a refi form Sunday night, they called me Monday and I inquired about rates. Sunday night it was at 3%/15yr so I locked that in, yesterday it was at 3.5%/15yr.

If you plan on keeping your home, its a good time to refi...
 
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#79
What I feel is the bigger story here is the discount window rate cut to .25 b/c it's essentially given the FR the right to hold corporate debt. Shoot if you listened to Powell he encouraged banks to use it b/c banks have not been utilizing it. The FR mandate only allows them to hold Treasurys and MBS on their books. The discount rate allows banks to borrow directly from the FR with collateral for peanuts. This is totally misunderstood or unknown to so many who are selling off their portfolios in a panic. It's balls deep full tilt central banking financial system now all the way to the end.....who gets there first the US, China, Japan or Europe? No stopping it now. There will be no middle ground here it's either going to all melt down or be the largest market rally the world has ever seen. When it all melts down it won't matter where your money it's b/c insolvency turns it all into smoke. Selling now only locks in losses. What a shart show.....what a mess.....ugh hope I'm underground b/f the shart hits. Stay frosty folks.
 
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#80
8pointer said:
What I feel is the bigger story here is the discount window rate cut to .25 b/c it's essentially given the FR the right to hold corporate debt. Shoot if you listened to Powell he encouraged banks to use it. The FR mandate only allows them to hold Treasurys and MBS on their books. The discount rate allows banks to borrow directly from the FR with collateral at next to nadd. This is totally misunderstood or unknown to those who are selling off their portfolios.....it's balls deep full tilt central banking financial system now all the way to the end.....who gets there first the US, China, Japan or Europe? No stopping it now. There will be no middle ground here it's either going to all melt down or be the largest market rally the world has ever seen. When it all melts down it won't matter where your money it's b/c insolvency turns it all into smoke. Selling now only locks in losses. What a shart show.....what a mess.
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You’re miss understanding how the system works. They cannot hold corporate debt and the discount window has absolutely nothing to do with this.
 
#81
Tahoe said:
You’re miss understanding how the system works. They cannot hold corporate debt and the discount window has absolutely nothing to do with this.
Click to expand...
Ok well call it what you want, but if it's put up as collateral....meh....tit for tat....it can and will be used. Hence why I used the term 'essentially'.

During his press conference following yesterday’s announcement, Powell emphasized that the Fed is statutorily limited to purchases of US Treasurys and mortgage-backed securities for its balance sheets. These limits, however, do not apply to discount window loans.

According to the Fed’s website, assets that can be used for discount window collateral include:

  • US Treasury obligations
  • Obligations of US government agencies and government-sponsored enterprises
  • Obligations of states or other US political subdivisions
  • Collateralized mortgage obligations
  • Asset-backed securities
  • Corporate bonds
  • Money market instruments
  • Residential and commercial real estate loans
  • Commercial, industrial, or agricultural loans
  • Consumer loans
 
#82
There is a grey area under 13c but that involves Congress as It stands now they can’t.

Trumps admin will have socialized the market if it comes to this. I seriously doubt him or his supporters want this to occur.
 
#83
Tahoe said:
There is a grey area under 13c but that involves Congress as It stands now they can’t.
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Well this may be shocking to you, but turn on financial news. It's already taking place today the discount window is ripping along.....welcome to the new madness. CNBC was just detailing it.
 
#84
8pointer said:
Well this may be shocking to you, but turn on financial news. It's already taking place today the discount window is ripping along.....welcome to the new madness. CNBC was just detailing it.
Click to expand...
Don't listen to talking heads, either your miss understanding what they are saying or they are confused how the system works.
 
#86
Tahoe said:
Don't listen to talking heads, either your miss understanding what they are saying or they are confused how the system works.
Click to expand...
Is your contention that the bullet points/web page from the FR below can't be used for collateral? Or that it can't be happening this morning w/o Congressional approval?

This is straight off their web page not from a talking head. Nowhere on that page or any of the links is Congressional approval mentioned. Nor was it mentioned this morning....maybe it's true you could be right? All I can go on is what I've researched, read and heard. Can you provide some documentation into your observation please in to how it requires Congressional approval with something I can read please? If I'm wrong I'm wrong, but nothing I've read from the FR or head from 'talking heads' on CNBC says anything about Congressional approval for what is going on this morning.

Pledging Collateral

www.frbdiscountwindow.org www.frbdiscountwindow.org
 
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#88
Ok maybe this is what you were talking about with Treasury approval? 10:44EST >>>

The Federal Reserve in the first use of it's Emergency Powers Act during the virus have powered up the Commercial Paper Funding Facility modeled off the Financial Crisis. The CPFF will be available to lend against commercial paper from corporations via a $10B credit backstop from Treasury. I like that they are being picky with A1/P1 paper and not dumpster fires....yet Hope the investment grading is accurate, but my belly roils to think this is only the first shoe to drop and less desirable debt will be considered. It went active this morning....here we go.

Love for this to a farce though

Ugh

www.miragenews.com

Federal Reserve Board announces establishment of a Commercial Paper Funding Facility to support

The Federal Reserve Board announced today that it will establish a Commercial Paper Funding Facility (CPFF) to support the flow of credit to
www.miragenews.com www.miragenews.com
 
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#90
Tahoe said:
crazy to see Trump become a socialist , we knew he was for the 1%, and that’s who they bailed out again this morning.
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I think it will take a lot more than this to sway a Trump supporter to a Biden platform, but that's just my vote talking can't speak to others choices. The Federal Reserve didn't just begin raping us this morning it was set in motion long b/f DT was in TWH.
 
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#91
8pointer said:
I think it will take a lot more than this to sway a Trump supporter to a Biden platform, but that's just my vote talking can't speak to others choices. The Federal Reserve didn't just begin raping us this morning it was set in motion long b/f DT was in TWH.
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They have nothing to do with Trumps choice to bail out the rich. Fed stepped in sep 19 when repo market failed. The last time they had to do this was 08. This bailout of companies who had record earnings is 100% on his shoulders. These companies chose to spend money enriching their management and left very little money for operation, I say let them fail... That’s capitalism..... What we are witnessing is socialism
 
#92
Tahoe said:
They have nothing to do with Trumps choice to bail out the rich. Fed stepped in sep 19 when repo market failed. The last time they had to do this was 08. This bailout of companies who had record earnings is 100% on his shoulders. These companies chose to spend money enriching their management and left very little money for operation, I say let them fail... That’s capitalism..... What we are witnessing is socialism
Click to expand...

I hate to break it to you, but there are certain things the president has to just do what they are told or else.
The Global Elites and the Banking Class that rule the world will let you get away with all kinds of stupidity as you wish, but you'll notice pretty much every president in recent history (At least since they made an example out of Kennedy) does exactly what they are told when it comes to banking.
Also you know the Federal Reserve pretty much does whatever they want regardless of the politicians. The politicians can however select certain members from a list (generally G&S employees) they are handed.

I don't think Trump actually has much choice but to do as he is told when it comes to the big boys.
 
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#93
Tahoe said:
They have nothing to do with Trumps choice to bail out the rich. Fed stepped in sep 19 when repo market failed. The last time they had to do this was 08. This bailout of companies who had record earnings is 100% on his shoulders. These companies chose to spend money enriching their management and left very little money for operation, I say let them fail... That’s capitalism..... What we are witnessing is socialism
Click to expand...
Hmmm well we all have our opinions and you are certainly entitled to yours. Corporate socialism did not start 3 years ago, last September or this morning. I'm not even going to suggest it started with Obama b/c it didn't as he didn't run or administer Fed policy any more than Trump does beyond an appointment of a Chair. The debasement of this nations economic framework has happened slowly and it's only picking up in tempo.
 
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#94
I assume most on here are blue collar folks. This is a bail out for the rich again with our taxes, they are choosing to throw us a bone with the 1k per person bail out. My frustration is with corporate america and the constant BS they pull. The majority of these companies have had record profits for 8 years and chose to spend their free cash flo on buy backs and board compensation knowing politicians would bail them out if needed. Well low and behold 3 weeks into this emergency every corporation you can think of has their belly up to the printing press asking for bail outs.... this just pisses me off.

I thought Trump would hold them accountable and call bs on the ones just trying to take advantage, I was wrong.
 
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#99
Tahoe said:
This is a bail out for the rich again with our taxes,
Click to expand...

LOL...

What taxes? We have been in deficit spending for like 100 years almost and REALLY seriously since 2001... any stimulus is just funny money that will NEVER get paid back... EVER....

If the country doesnt implode from this, that almost proves to me(and I am SURE the bankers) we can just print money forever and there are no consequences... so might as well just carry on...
 
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