I know a mortgage lender and she has helped me so much in understanding mortgage lingo, and knowing the proper questions to ask, and being honest with me when another lender had a much better loan to offer me.
Today, I'm meeting with that lender to talk about locking-in a rate (I am having a house built, and it probably will not be done until spring time at the soonest).
Looking at the Federal Reserve's site, they posted the following Press Release.
http://www.federalreserve.gov/boardd...20/default.htm
Quote:
Release Date: September 20, 2006
For immediate release
The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent.
The moderation in economic growth appears to be continuing, partly reflecting a cooling of the housing market.
Readings on core inflation have been elevated, and the high levels of resource utilization and of the prices of energy and other commodities have the potential to sustain inflation pressures. However, inflation pressures seem likely to moderate over time, reflecting reduced impetus from energy prices, contained inflation expectations, and the cumulative effects of monetary policy actions and other factors restraining aggregate demand.
Nonetheless, the Committee judges that some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; Timothy F. Geithner, Vice Chairman; Susan S. Bies; Jack Guynn; Donald L. Kohn; Randall S. Kroszner; Frederic S. Mishkin; Sandra Pianalto; Kevin M. Warsh; and Janet L. Yellen. Voting against was Jeffrey M. Lacker, who preferred an increase of 25 basis points in the federal funds rate target at this meeting.
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I know guessing what the Fed is going to do with interest rates is not the easiest game, but with the housing market cooling down would they be thinking about decreasing or increasing interest rates down the road? I know there is much more involved in this than just property ownership, but I am curious.
I am going to see what option there are about setting up a float down, and make sure to get as much information as possible with the lender today. Luckily, today I am not finalizing everything, just discussing further options.