Can someone please explain to me.....?

why Bank of America%26#039;s mortgage rates increased from 6% (before Bernanke lowered it) and then after his talk INCREASED to 6.375%!?! This doesn%26#039;t make any sense to me. I have been waiting the past week or so to lock in my rate because it was supposed to go down, and it did. So, why did Bank of America raise the rate? Can someone please explain this to me? I am so aggrevated! I know that setting your rate is like a gamble...I just didn%26#039;t expect it to go up today...vent!

Can someone please explain to me.....?loan rates

well

http://articles.moneycentral.msn.com/Inv...

WHY FED CUTS ARE BAD FOR YOU

The Federal Reserve today will attempt to get out in front of the worst financial crisis to hit the world banking system in five decades by slashing short-term interest rates from their current perch at 3% to the lowest levels in years.

But its effort will have little effect on the ability of the average American to get a cheap loan for a new home, car or college education even as it has a large effect on U.S. banks%26#039; ability to fix their balance sheets by racking up fat profits.

If that sounds unfair, welcome to the latest episode of a brutal new American business ethic, in which the government bails out bad bets by risk-taking banking executives in New York with money that it borrows from middle-class families and foreign investors. The effort is gilded with fancy financial language and cloaked in the guise of a rescue that helps all citizens, but the reality is that Washington is essentially robbing the poor to help the rich.

It seems odd, but these are extraordinary times. Normally, when the Federal Reserve cuts the rate at which it lends money to U.S. banks, those banks in turn cut the rates at which they lend money to citizens and companies for personal and commercial use. Simple enough. Yet in the past few months, banks have made three important changes in their usual practice:

They have not been passing all of their interest-rate savings to customers.

They have restricted lending only to most creditworthy, documented applicants.

They have cut the total amount they%26#039;re willing to lend.

Good for banks, bad for you

Banks are taking these seemingly perverse steps in an effort to reverse the effects of the massive losses they have withstood for lending too broadly to consumers and companies with lousy credit over the past five years.

They%26#039;re pulling a big 180, which is as confusing as it is disheartening. Rather than providing funds to prospective home buyers and business people with legitimate needs for moving into larger homes or expanding factory lines, records show the banks are hoarding the low-cost money they%26#039;re borrowing from the Fed and investing it in Treasury bonds paying higher interest yields. They%26#039;re then pocketing the windfall profits to repair their own ravaged balance sheets.

Can someone please explain to me.....?

loan

ur guess is as good as mine!|||The bank executives are nasty SOBs... I know, I%26#039;ve worked for several banks, they only care about their bottom line. I%26#039;m in the process of trying to buy a house as well, and working with the banks really sucks.

I really think that a law should be passed that the banks interest rates get cut only on the condition that they pass the cuts on to their customers. I hate hate hate bank CEOs especialy you P.F. ( a charlatan of a CEO from one of the banks I%26#039;ve worked at in the past, who was making millions of dollars while his employees were losing their jobs).

The whole american corporate world is _ucked up.|||The simple answer is that mortgage rates are not neccessarily tied to the Fed rate.

My credit union%26#039;s rates are more closely tied to what 10-year Treasury bills are doing, and sometimes the mortage rates head in the opposite direction that the Fed rate is.|||Basically, the US is lowering interest rates to try to stimulate it%26#039;s economy. However, some lenders are raising theirs to cover the increasing costs of lending money.

You%26#039;re only paying 6.375%. I%26#039;m in Australia. I%26#039;m paying 8.75%. That%26#039;s lower than ALL MY FRIENDS, who are paying close to 9%. We have interest rates at an 11 year high. Next month they will most likely go up again. No offense intended, but you%26#039;re carrying on like a pork chop. You%26#039;ve got it pretty good.

I%26#039;d fix the rate on your loan for only maybe 12 months. That will hedge your bets, so to speak. If interest rates start to go up where you are, you will be better off. If they go down, you won%26#039;t be out of pocket too much.

Best wishes.