ST Alpha - "It's unclear, but I would expect mortgage interest rates to go up or stay steady in this climate. Default risks are this much higher right now IMO" (Reading a Post)

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In response to "So with a 0% Federal Interest Rate, what will that do to mortgages / mortgage rates? -- nm" by JaxSean

It's unclear, but I would expect mortgage interest rates to go up or stay steady in this climate. Default risks are this much higher right now IMO

Posted by JackDawson (aka dawson) Mar 16 '20, 07:18

The fed rate is a borrowing rate for banks, not our rates, in case that was not clear?

Responses:

Mortgages are longer term and this will have some impact, but you probably already have a low rate. Short term lending (like lines of credit for - pmb Mar 16, 07:21 2
- This was supposed to go under Jax's post. -- nm - pmb Mar 16, 07:22 1
  - Thanks all -- nm - JaxSean Mar 16, 07:27
It is, but usually if the rate to borrow for banks goes down, I (assumed) mortgage rates (and other interest rates) would somewhat similarly. - JaxSean Mar 16, 07:20 1
- There's obviously a correlation pressure for sure, but indeed mortgage rates right now are not going down, as there is obviously significant upward pe - JackDawson Mar 16, 07:22

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