Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Fed funds rate vs Mortgage rates
Old 01-18-2008, 12:49 PM   #1
Thinks s/he gets paid by the post
jIMOh's Avatar
Join Date: Apr 2007
Location: Milford, OH
Posts: 2,085
Fed funds rate vs Mortgage rates

Fed funds rate is 4.25% right now, I believe (1/18/2008 -).

It has been a while since I needed to get a mortgage... and would consider refinancing if I could find a rate around 5% or less for 30 yr fixed.

Anyone here have (now) or did have (paid off) a mortgage less than 5% without paying points? Do you remember what the fed funds rate was when mortgage rates got that low?

I know mortgage rates track the bond market (treasuries) more than the fed funds rate. If you remembered what the bonds value/yield was when rates got below 5%, feel free to share.

My current mortgage is 30 yr fixed, in year 2, at 5.75%. Credit score is between 750 and 820. It was 780 last time we refinanced.


Light travels faster than sound. That is why some people appear bright until you hear them speak. One person's stupidity is another person's job security.
jIMOh is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-18-2008, 12:54 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
Join Date: Mar 2003
Posts: 15,910
You are looking at the wrong rate for a fixed mortgage. Fixed mortgage rattes trach the 10 year treasury and MBS coupons. When I got my 4.99% 15 year fixed mortgage (with the lender paying every cost), the 10 year treasury was around 3.25%. But MBS wasn't yielding much more back then, whereas spreads for even prime conforming mortgages are sgnificantly higher today due to all the mess in the mortgage markets. So I think that unless the mortgage markets heal or the long treasury drops a lot further, you may not see a 30 year fixed at 5% without points.
"Neither my companion or I carry firearms on our persons. We depend on the goodwill of our fellow man and the forbearance of reptiles."

- English Bob
brewer12345 is offline   Reply With Quote


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Mortgage Rates & the Fed scooter260 Other topics 6 12-08-2007 07:09 AM
Explanation of Mortgage Rate & Interest Rate Enuff2Eat FIRE and Money 8 10-04-2007 02:25 PM
fed halts rates? NOT! mathjak107 FIRE and Money 20 05-14-2006 02:33 PM
Fed raises rates again. laurence FIRE and Money 20 09-21-2005 10:33 AM
Fed raises rates again VoyT FIRE and Money 6 07-01-2005 08:08 PM


All times are GMT -6. The time now is 04:37 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.