You forgot the quadruple whammy is that inflation is on the rise and may be higher than what you are earning on your savings also. In effect, you are loosing money by savings it in HYS.

Hopefully, at a minimum, the higher inflation will encourage banks to raise rates.

The problem is that as the fed opens up more liquidity, banks are not so asset starved, can get their loans cheaper elseware, and have less reason to pay a good rate to savers. This will eventually have the effect of discouraging people from putting thier money in HYS can CDs, and they will put it in other investments.

mhesidence said:DealWinners said:I wondered the same too? There may be something else which we might be missing here.

Inflation. FED is lowering short term rates, mortgages are long term.

Simple yet surprising that many people dont get it. A fried of mine said "when the fed lowers its rate to 2%, thats when am buying my house". I did not mistake him - confirmed that he expected his mortgage rate to be close to 2% also. My jaw dropped!

msimon21 said:Edit by Moderator: Thank you for participating in the forums. However, this topic has been covered in a recent post Here.Tee hee hee. Forgot to lock.