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Q3:08 6.42% including fees and charges. While higher than recent past, the current
rate is less than 1% above its cyclical low – still very affordable. Crystal balls are cloudy because predicting
consumer psychology is nearly impossible. While the Fed is trying to use
interest rates to foster economic growth and curtail the financial meltdown
with the Federal Funds rate back down to 1%, I suspect the losses by the
financial institutions will force them to increase rates to overcome their
losses.
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