Mortgage rates have now hit a 16-year high. It’s a process, but finally the economy is getting the medicine it needs. (new articles to follow.)
best news ever thanks Biden!
This is a good thing.
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Wouldn’t Make America Great Again include going back to higher home interest rates???
Yes.
Artificially low interest rates
1.) Are middle class welfare
2.) Backfire by causing housing collapses and inflation.
Who benefits form frequent housing price collapses? You?
They beat us with a stick. Now the medicine stings. Don’t blame the medicine, Blame the fact that they beat us with a stick. (“Mommy mommy please don’t spray bactine on it.”)
Look at the chart above and tell me
what rates do -not- lead to 2 housing collapses in 12 years.
oh i know it’s extraordinary. everything that happens now is a “good thing”
high gas prices, groceries through the roof, inflation, etc…. all awesome. especially for the next couple weeks
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the last thing anyone would want is a lot of home buying huh?
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in an inflated market? yes…
You mean like bubble-bust every few years.
yeah that totally sucks
If the free market does that its bad enough,
but when the Fed deliberately does that too us again and again . . . they need to change policy.
except for people who want to buy a house. huh?
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buying a home in an artificially inflated market is a terrible investment.
have we intentionally forgotten 2009?
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What do the austrians a gold bugs think about artificial-lowering of interest rates.
Are they big fans of that sort of thing?
I would have bumped it up to 6.67 just to avoid the creepy number optics.
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Biden and what the fed had to do because of him just cured that… All those homes that were sold in the last few years will decline in value. The same will go for all the toys that have been purchased using the 31 trillion that was wildly spent and handed out.
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yes, that’s what happens after interest rates hit close to zero… this was inevitable.
IIRC, you work in Finance correct?
What I am wondering about is if banks loan only the money that the depositors have on deposit, or if they borrow money from the fed at a low interest rate and loan that money out and make a few points off the deal?
I would really like to see retirees making interest off of their savings accounts again. Right now many seniors are out living their savings. If the savings accounts could pay even 5% interest on savings accounts, that would go along ways for retirees.
I am a stay-at-home trader.
These days it is super easy to “bet” the market will go up or down so,
professionally I don’t care.
If I think real estate is going up I buy $DRN if I think it is going down I buy $DRV
For now it is working well but my results are (still) inconsistent so . . . no one in their right mind would lend me money based my last 60 days results.
My college major was Econ/Gen Ed. That’s why patterns like
“Ridiculously low rates have led to two recent housing bubbles” become obvious to me,
whereas John Q Journalist says “Oh my freaking God! Rates are at a 16-year high. That’s too high!! That’s too high!! Shriek!!!”
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Added:
A few weeks ago I posted/linked a video I saw about planetary motion.
The folks on this forum who actually know astrophysics kindly explained to me that I and the video were both mistaken and did so in a way that did not make me feel bad.
