they are at 6% right now
2006-06-15 03:05:28 · 3 answers · asked by mee 2 in Politics & Government ➔ Other - Politics & Government
2015 before you see 4% interest rates again.
2006-06-15 03:07:06 · answer #1 · answered by ? 6 · 0⤊ 1⤋
interest rates are based on may things. Mortgage rates are based on the bonds and stock markets as well as the London inter bank offered rates. Very complex answer but if all are down then the rates drop. Your mortgage is your bond with the lender to pay. So with that being said if the treasury is down then the rates will follow, but if the stock market is soaring at the same time it will not. The fed sets the fed funds rate and that has a trickle down effect on long term lending as well but it takes some time. It is all about the supply and demand on the economy.
Hope this helps you.
2006-06-15 10:15:51 · answer #2 · answered by golferwhoworks 7 · 0⤊ 0⤋
When inflation is low, interest rate is likely to go down. Currently, inflation is creeping up on us because gassoline prices are up which also contributes to increases in other prices like groceries, transportation costs, etc. In other to fight the threat of inflation, the Federal Board has been increasing interest rates charged to banks by a quarter of a percent every month for the past 16 months.
2006-06-15 10:52:55 · answer #3 · answered by mattoo 1 · 0⤊ 0⤋