Thread: F Fund Confusion

Theefficient market hypothesis would assert that the bond market incorporated the news regarding the first rate hike long before the actual hike took place. Also, there were no surprises from Greenspan regarding accelerated future rate hikes. Both of the above may help to explain the short-term performance of the F fund.

Exactly right Pete. As I stated in another forum, the futures markey is paying for next year at an anticipated feds rate of 3.04%. I'm looking for more increases soon after the elections. Could see another small one before also. Buy your house now!

Unless of course you have cash. Then wait till the housing prices drop because of the rate hikes! :^

The weak June jobs data shouldboost F fund prices (highly unlikely that Greenspan will pick up the rate hike pace on this news).

Interestingly, 30 fixed mortgage rates dropped after the rate hike. Seems like bankers stroked those looking to refi or buy prior to the hike. I agree that now would probably be a good time to look but there may be further drops in the 30 year fixed rate based on the jobs data.

I should have said short-term drops

Oy...I am buying another house to move into by November, possibly sooner. Any tips or advice regarding securing the best rate/price and timing?

It is tough to know when to lock in a rate.Rates trended up prior to the hike but have dropped a small amount and seem fairly steady right now. The best advice that I can give is to shop around for the best rate available when you do decide to buy your house and also, try calling a couple of mortgage brokers to see if they can provide any useful input regarding the short-term.

Pete1 wrote:

try calling a couple of mortgage brokers to see if they can provide any useful input regarding the short-term.

Isn't that like asking a surgeon if you need surgery or not? :P

Sort of .

Pete1 wrote:

Sort of .

Well, that would also be a good "litmus test" to find the no-BS, honest broker.