Posted on 02/27/2018 8:36:53 AM PST by SeekAndFind
bkmk
Must be a local thing - rates are crawling upward - and with a dead market where we are tying to sell our old house - every move upward further closes down the real estate market.
You must be one of those folks that likes 19% mortgage rates?
“I also remember earning 14.3% on my money market mutual fund back in 1981.”
Ah yes. The good old days in 1982 when home interest rates were 17%. There was a special offer for a 13% loan which I grabbed and bought my first house. I thought I had quite a deal with a 13% home loan.
Hopefully we won’t see that environment any time soon. I would however like to see interest rates get to 4 - 5%.
They do need to get back to reality. It is what is best for the country after 8 years of fakery and chicanery.
“At the December meeting, the median [FOMC] participant called for three rate increases in 2018,” Powell said. “Now since then, what we’ve seen is incoming data that suggests a strengthening in the economy.”
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And the Fed can’t allow that. I was hoping Trump would pick somebody different than the usual rate hiker that blames inflation on prosperity.
Good. Free money is no way to encourage responsible behaviour.
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Nope, and neither is manipulating interest rates to kill the economy.
The Fed needs to STFU. Things are fine, or were, stop tweaking.
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Yep, and the Swamp may already have plans to cause a recession just as Trump is running for reelection.
That’s what they said about last year. Did they do it?
If you want to have some run try calculating the interest on the national debt at a rate of 14%.
I believe it would then eat all of the tax revenues—with maybe a little more debt required just to pay more interest.
Do it now. Mortgage rates are still extremely low.
If you wait til they go up, then you’ll have to drop the price to get a buyer, won’t you?
This is crappy news for those of us who are desperate to sell our old home and get a mortgage on a home in our new work location... made even worse by the necessity to get the old house sold FIRST...
sell now.
We’re going to see at least 10% of all listed companies go BK or be acquired CHEAP in the next few years because they have only been kept alive with free money... Sell your house NOW at whatever price will move it or keep it as a rental... if that keeps you from buying in the new location look at renting with a multi-year lock in on the rate or at least a reasonable cap. If this happens you’d be better off renting and buying more house a few years later for less $$$$...
The markets can’t stay in fantasyland forever ... this should never have gone on for 10 years ,, 2 at the most...
Yes! I have been saying that for years. These DC politicans will be in deep trouble if interest on the debt rises to even 5% much less 7% or higher. The interest on the debt alone will swallow the budget.
Obama set them up out of revenge for the damaged goods during the final bush days.
I don’t especially worry because in anticipation of the economic growth from less regulation and the tax cuts, the market has risen.
The economic growth will outpace the interest rate rise. The inflation will in effect reduce the real value of the debt there by absorbing the amount of interest due on new debt.
I agree with each line that you wrote!
It will take some people who were marginally able to afford a house to begin with out of the market I would think. Interest rates have been historically far higher and houses were still bought and sold.
You got it. Interest rates should be set by the free market. It would be nice, to me at least, if they were in the range of say 4-8%. Let’s encourage savings and investment. Stock valuations seem crazy.
They want to arrest the development of inflation, but this is overkill.
It will be a good time to shift from stocks to bonds.
I agree, but what has suddenly turned the Feds into monetary hawks after decades of the cheerleaders of the asset markets?
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