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Rates going up

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July 24, 2008 – Comments (3)

I think it was just yesterday I posted about rates going up and that you were nuts to be in a short term adjustable mortgage.

My longer term thinking was that bank rates for savings would be going up again and when that happens I could lock into something with a good yield for a longer term.  I am not so sure that savings rates are going to go up as much as I was hoping because of the enormously increasing spread between savings and lending, and that has to happen in order for banks to get their balance sheet back in order.  It seems to me before these financial, incompetent, models the rate spreads were much higher and that is what we'll be seeing a return towards.

But wow on how much the mortgage rates increased this week... 6.63% from 6.26%.

3 Comments – Post Your Own

#1) On July 24, 2008 at 12:28 PM, dwot (72.09) wrote:

OMG, I didn't see this in the main news, just via Mish.  Workers are having wages slashed to minimum wage, $6.55/hour.

It says until the budget is passed...

What kind of trickle down effect is this going to have?  Who makes a low income and has room to make changes?  I am assuming they hit their already most challenged workers.

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#2) On July 24, 2008 at 2:47 PM, devoish (97.62) wrote:

I wonder how many of 200,000 are struggling to pay mortages?

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#3) On July 24, 2008 at 7:31 PM, dwot (72.09) wrote:

devoish in my experience the way the system seems to work is those who have the least to give and are already struggling the most are the hardest hit.  I am willing to bet these people are in short term jobs and trying to make ends meet is already an enormous struggle.  I bet it doesn't touch the sinkhole of unsustainable and unaffordable wages...  I am only guessing. 

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