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Why talk about property prices when its really about interest rates
Scooby_Man
Posts: 131 Forumite
A great line taken from another poster:
"It also pays to bear in mind that for the vast majority of people, house prices are only important three times: the day they buy, the day they sell and when they brag about how clever they've been at a dinner party."
So unless you're buying, selling or bragging, surely its the interest rate that affects the majority of us (with mortgages)?!
And my next, and topical, question...what way will interest rate go? I hope they dont go any higher :-(
"It also pays to bear in mind that for the vast majority of people, house prices are only important three times: the day they buy, the day they sell and when they brag about how clever they've been at a dinner party."
So unless you're buying, selling or bragging, surely its the interest rate that affects the majority of us (with mortgages)?!
And my next, and topical, question...what way will interest rate go? I hope they dont go any higher :-(
Smile and be happy, things can usually get worse!
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Comments
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Sorry just to add theres a 4 time its important and thats when you want to borrow more to get new car / new telly / new laptop so the neighbours know how rich you are even thought they do the exact same job as you.If it doesnt pay rent sell it.
Mortgage - £2,000
Updated - November 20120 -
>>And my next, and topical, question...what way will interest rate go? I hope they dont go any higher :-(<<<
The short sterling market, where the traders bet on interest rates has eased, but still showing 5 3/4% by end of year.
However, the last vote which was 5 to 4 for raising the 1/4% showed a division in the committee - could mean no more rises.FREEDOM IS NOT FREE0 -
prudryden wrote:>>And my next, and topical, question...what way will interest rate go? I hope they dont go any higher :-(<<<
The short sterling market, where the traders bet on interest rates has eased, but still showing 5 3/4% by end of year.
However, the last vote which was 5 to 4 for raising the 1/4% showed a division in the committee - could mean no more rises.
Thanks. Is there a good interest rate discussion area? I need to get remortgaging in about 10 months as my current interest will expire and become base + x%.Smile and be happy, things can usually get worse!0 -
...i have said it many times here, i will say it again: rates to go up to 6 - 6.25 per cent by year end 2007. they (BofE) are drastically underestimating the rate of inflation, and underestimating how quickly inflation will dissipateScooby_Man wrote:Thanks. Is there a good interest rate discussion area? I need to get remortgaging in about 10 months as my current interest will expire and become base + x%.
BLOODBATH IN THE EVENING THEN? :shocked: OR PERHAPS THE AFTERNOON? OR THE MORNING? OH, FORGET THIS MALARKEY!
THE KILLERS :cool:
THE PUNISHER :dance: MATURE CHEDDAR ADDICT:cool:0 -
I'm watching this with mild amusement, in 2005 people were thinking that IRs might go as high as 5% before coming down, 2006 people are talking at them peaking at 6%, 2007..."Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0 -
...and i was even more amused when the so-called bloo*y experts could not even make accurate predictions as to what mervyn king intended to do (bar one of star assest management i believe). it won't be so amusing when it happens. anyway, i am sticking by my guns here - rates to rise twice more in 2007. this will be year of the saver (like myself!), about time too
addendum: i DO NOT see rates dropping in the usa also, despite what the market makers think BLOODBATH IN THE EVENING THEN? :shocked: OR PERHAPS THE AFTERNOON? OR THE MORNING? OH, FORGET THIS MALARKEY!
THE KILLERS :cool:
THE PUNISHER :dance: MATURE CHEDDAR ADDICT:cool:0 -
free4440273 wrote:...and i was even more amused when the so-called bloo*y experts could not even make accurate predictions as to what mervyn king intended to do (bar one of star assest management i believe). it won't be so amusing when it happens. anyway, i am sticking by my guns here - rates to rise twice more in 2007. this will be year of the saver (like myself!), about time too
addendum: i DO NOT see rates dropping in the usa also, despite what the market makers think
I believe that the rise was priced in to bonds, futures etc for Feb so they were only a month out. I think there was a belief that rates would only move when the quarterly inflation report(?) came out in Feb.
For what it's worth I can see another rise or 2 by year end assuming Israel and Iran don't do anything stupid.0 -
They were expecting a rise in Feb, hoewever the Jan rise was not expected and was not priced in. Term swap rates have increased by more than 0.25% in the last 2 or 3 weeks and by about 0.5% in the last month or so, reflecting a changed market sentiment about how high rates are going to go.
If anyone knows a link to a graph of swap rate movements could they please post it?I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
BLOODBATH IN THE EVENING THEN? :shocked: OR PERHAPS THE AFTERNOON? OR THE MORNING? OH, FORGET THIS MALARKEY!
THE KILLERS :cool:
THE PUNISHER :dance: MATURE CHEDDAR ADDICT:cool:0 -
free4440273 wrote:
Sadly it doesn't update very often. It used to be at least once a week, now it's every fortnight.
Still, it shows you how swaps have soared in the past few months.0
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