K****D
发帖数: 30533 | 1 Why I don't see any? Thanks. |
t*******d
发帖数: 2570 | 2 Not necessarily.
My personal understanding:
CD rate is tied to short term Treasury rate. Mortgage rate is tied to long
term treasury rate (30 years).
The long term rate is set largely by the market. The short term rate is set
by the Fed.
【在 K****D 的大作中提到】
: Why I don't see any? Thanks.
|
K****D
发帖数: 30533 | 3 But now isn't Fed rate 0%? But CD rate is 2.xx% ah.
Do they still track each other?
set
【在 t*******d 的大作中提到】
: Not necessarily.
: My personal understanding:
: CD rate is tied to short term Treasury rate. Mortgage rate is tied to long
: term treasury rate (30 years).
: The long term rate is set largely by the market. The short term rate is set
: by the Fed.
|
h*******y
发帖数: 864 | 4 Average CD rate is lower than 2%. And the interest rate on CD has a permium
over saving account rate for the obvious reason.
By the way, one side effect of the government keeping zombie banks alive is
that people can get higher CD rate. Suppose you are the manager of a zombie
bank, you know your bank is insolvent. The only sensible path forward is to
attract depositors with higher interest rate, then lend out the money to
very risky borrowers. If you are lucky, the risky borrowers pay you back
w
【在 K****D 的大作中提到】
: But now isn't Fed rate 0%? But CD rate is 2.xx% ah.
: Do they still track each other?
:
: set
|
