LIBOR still dropping...

inspector_monkfish

LIBORs 3rd July

3mth 1.14125 (down 2pts)
6mth 1.3725 (down 2pts)
12mth 1.665 (down 2pts)

its all 1 way traffic....

i wont be around on monday by the way

crispy2_2

5 YEAR RATES 3rd July
Swap 3.60
Gilt 2.88

inspector_monkfish

LIBORs 6th July

3mth 1.12375
6mth 1.35813
12mth 1.65

(all down between 1 and 2 pts)

Alan_Cross

Interesting to hear any lender's explanation for any rate increase at the moment given this and BoE position.

Looks like naked profiteering to me. Maybe the Govt. needs to call 'em in and bang heads again.

opinions4u

Alan_Cross wrote: »

Interesting to hear any lender's explanation for any rate increase at the moment given this and BoE position.

The BofE position is irrelevant - it's totally disconnected from the market.

Looking at swap rates you'd expect to see a 0.12% drop in 5 year fixed rates when compared to 5 days ago. Don't get too excited! Fixed rates will begin to fall slightly over the next week or two.

The obvious caveat on this is that savings rates are being pushed upwards at the moment (which means banks costs are rising, hardly an example of profiteering).

MSE Linky

Looks like naked profiteering to me. Maybe the Govt. needs to call 'em in and bang heads again.

I think the less the government gets involved the better. They already own 43% of the mortgage lender with the biggest market share.

Alan_Cross

opinions4u wrote: »

Looking at swap rates you'd expect to see a 0.12% drop in 5 year fixed rates when compared to 5 days ago. Don't get too excited! Fixed rates will begin to fall slightly over the next week or two.

MSE Linky

I think the less the government gets involved the better. They already own 43% of the mortgage lender with the biggest market share.

Rubbish. The whole reason for the state we're in is the 'light touch' approach.

Those countries whose governments took a more interventionist approach in the financial markets can now give us the 'I told you so' line - and with good reason.

It seems to me we're getting scant value for our massive bale out of the lenders. I thought Governments were supposed to look after the majority interest of the population. The banks should be run, while our stakeholding is as high as it is, at minimum return for anyone except the taxpayer - and that does not mean building up their profitability but lending at reasonable rates so that the rest of the economy can recover.

The lesson that Governments are actually there to do things in the interest of the greater good has not been learned.

inspector_monkfish

LIBORs 7th July

3mth 1.10813 (down 1 1/2pts)
6mth 1.34250 (down 1 1/2pts)
12mth 1.635 (down 1 1/2pts)

sarmia

Do you think this will push down the fixed rates?

crispy2_2

sarmia wrote: »

Do you think this will push down the fixed rates?

Sarmia,

It's swap rates, not LIBOR, that you need to look at to understand how fixed rates are going to change. 5 year swap rates were at their highest in 6 months around 2 weeks ago. Since then, they have dropped by 0.25%. But they are still around 0.5% higher than a month ago. So, as opinions4u says, 5 year fixed rates may become slightly cheaper in the next couple of weeks, but whether they continue to cheapen or start to become more expensive after that is anyones guess.

Crispy

inspector_monkfish

sarmia wrote: »

Do you think this will push down the fixed rates?

not in the slightest!!
they have been coming lower for weeks now, and this is just a continuing trend

a few years ago there used to be mortgages available based on LIBORs, funnily enough those have all disappeared now !!

what it does show though, is that banks are able to get cheap funding, they just dont like to pass it on to their customers