350B injected to banks to boost the economy..

[Wagner]

and these are your going mortgage rates

Better yet is congress looking around going "we're not sure what to do"...We as a nation continue to operate under the notion that we will not prevent failure, but help once it occurs. So if you have that 750+ credit score, you can't get a good loan..but once you fall to around 550 or less, we'll help. We aren't going to keep you good, but help you if/when you fail. And for all of you that couldn't be trusted to manage a lemonade stand, we'll help you out immediately and let you fail again so we can help again and feel good about ourselves.

350B injected, Fed rate at a quarter percent...and this is what Joe Citizen has available to him. Gee, I don't know why the markets aren't turning around.
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30 yr fixed mtg 5.42%
15 yr fixed mtg 5.12%
30 yr fixed jumbo mtg 7.00%
5/1 ARM 5.75%
5/1 jumbo ARM 5.96%

[StanF18]

Yep, point well-taken. I did not major in economics, but for anyone who knows, I do have a perplexing question. Why is 30-yr fixed at 5.5% and most discount loans (including student loans) are at 6 to 7% minimum, but some car-makers are able to offer much much better terms on financing?? Obviously BMW's 0.9% comes to mind, and I'm sure there are others as well. I'm sure there's a good reason, I'm just not getting it. You can buy a car at a great rate, but not a house....

[Eric5273]

Originally Posted by StanF18

Why is 30-yr fixed at 5.5% and most discount loans (including student loans) are at 6 to 7% minimum, but some car-makers are able to offer much much better terms on financing?? Obviously BMW's 0.9% comes to mind, and I'm sure there are others as well. I'm sure there's a good reason, I'm just not getting it. You can buy a car at a great rate, but not a house....

Because the BMW bank is losing money on the loan in order to subsidize the sale of the car. The banks don't make money on the sale of a private home, so they will not subsidize that sale. They need to make money on the loan. And with the current rate of forclosures, they need to make more money on every loan to make up for the losses of the many who have and will forclose.

The $350 billion was suppose to subsidize these loans and allow the banks to offer loans to more people and at lower rates, but instead the banks have simply put that money away and continued business as usual. Basically, the $350 billion was going to allow the banks to lose money, but still stay afloat, while serving to help the economy rebound. But the Bush Administration did nothing more than ask the banks to do this, and did not require it in writing as a condition for receiving bailout funds. So the banks have simply taken the money and done nothing. Now the geniuses in Washington are scratching their heads wondering why it didn't work.