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    carpetman's Avatar
    carpetman Posts: 13, Reputation: 1
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    #1

    Mar 24, 2008, 05:19 AM
    Fed Rates
    My wife and I are thinking about refinancing are home. Do you think the fed will drop rates even more than the current rate of 2.25% Should we wait or do it now?
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
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    #2

    Mar 24, 2008, 05:37 AM
    Hello c:

    2.25% is pretty cheap. Inflation is higher than that. It's basically free money. I wouldn't wait.

    But, even though money is cheap, it's scarce. So, I'm not sure you can even do it today.

    excon
    jonny0000's Avatar
    jonny0000 Posts: 5, Reputation: 1
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    #3

    Apr 2, 2008, 04:07 AM
    Quote Originally Posted by excon
    Hello c:

    2.25% is pretty cheap. Inflation is higher than that. It's basically free money. I wouldn't wait.

    But, even though money is cheap, it's scarce. So, I'm not sure you can even do it today.

    excon

    I agree 2.25% is cheap however I believe it will fall lower and we could even reach true free currency levels of 0%. The idea of this has been extensivly talked about, the last currency to make such a step was the Yen.

    I don't think the FED will lower it that far but do think we could see a further three quarter point fall before things get better meaning a rate of 1.5%. I would wait.
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