We’ve got a bad case of bad economic policies.
Who didn’t see the coming.
There are no good choices. So anything is possible, and everything will be bad.
It seems to me that the only way the massive national debt can ever be “handled” is to inflate it away. So I bet rates drop unexpectedly. Inflation will come back (as they desire) but rates will be low and that might appear to make the economy improve.
Personally, I would prefer a massive default, but I don’t expect that. I do expect massive inflation.
They recently dropped it to 4.5%.
You're suggesting that CD rates will go up again?
Mortgage rates during the Carter admin were between 14 - 18%
The Fed is not printing money, quite the contrary. Since April 2023, they have removed about $1.1 trillion from the money supply, and will continue to tighten at a rate of $75 billion a month.
This is why interest rates are going up!
The tight money is a symptom of the disease rather than its cause. The real culprit — the Democrats’ tax and regulatory policies and their war on merit. Need proof? Study the Reagon years.
Eh, I bought a mortgage in the 90s over 8%, and still managed to almost double my leveraged and tax-advantaged investment in less than 10 years.
The overall bubble economy and disappearing dollar are great risks, but the blip in mortgage rates isn’t the cause of that.
Fed will not cut. Chance that Fed will (must) increase a bit - sooner would be better.
Because: Math has U.S. gov’t “securities” interest payments as “not possible” by end of year.
Democrats and RINO’s to increase taxes, but fail to CUT GOVERNMENT PORK-for-VOTES AND WASTE.
IMHO
Isn’t the “printed money” actually loans that (obviously) have to be paid back? Where does that fit into the big picture?
Bitcoin.
The local owner of a very successful real estate brokerage firm told me that potential buyers are telling his agents that they are waiting for 30 year fixed mortgages to “begin with a 5” (i.e. 5.99% APR).
He thinks the dam will break at this threshold both in therms of supply and demand.
FWIW
Needs to go a bit higher to get back to the historical average...Fed manipulation to zero lasted way too long and stoked inflation. People are spoiled by the artificially low rates since the “GFC” of 2008/2009.
Keep bringing in millions of illegals and paying for their housing with tax dollars. That will sure help the housing costs.
I started getting credit card junk mail again. 29.99% annual interest. That’s loan shark territory. I don’t carry a balance on the ones I have but they are all in the high 20s.
Best economy ever. If only I weren’t so blind to see how real inflation during chomo Joes reign is easily 100%