Posted on 06/10/2022 10:55:38 AM PDT by Browns Ultra Fan
The Federal Reserve is going crazy on inflation news!
The Fed is expected to raise their target rate to 2.875% by February 2023. With that expectation, mortgage rates (yellow line) are soaring. And with that, University of Michigan’s Buying Conditions for housing has plunged to 43, the lowest levels since 1982 as the US was trying to recover from Carter Malaise.
The University of Michigan consumer sentiment index just plunged to the LOWEST LEVEL in history on inflation and Fed’s reaction.
Average REAL wage growth has now declined to -2.11% YoY.
Do Washington DC politicians and bureaucrats feel like we do? I doubt it.
(Excerpt) Read more at confoundedinterest.net ...
But we keep electing the same people who brought to this point, eh!
FLASHBACK: NYT Tried to Spin 1970s Stagflation to Protect Jimmy Carter Too
People are just too stupid to realize how great the economy is due to the Biden administration. There might be a few glitches here and there, but overall it is the best economy in recorded history.[/s]
I’ve been saying that for the last 25+ years. Hasn’t happened.😭
Justice would be that every Biden voter pay $10.00/gal. gas and the rest of us pay $2:00/gal.
I’ve been reviewing old financial documents that I am scanning into my PC.
The Fed simply spikes interest rates to try to pop bubbles.
Spike compensation escrow accounts can be set up, so if the mortgage interest rate is 5.25% the homebuyer merely pays 3.99%. The remaining 1.26% would come from the mortgage’s spike compensation escrow account. This account could be funded ten years into the future.
If interest rates fall back to say 3.999% or less, the buyer would be contractually obligated to refinance and once the buyer has done so, the remaining balance of spike compensation escrow account would be sent to the home’s seller.
If rates stayed high for two years, the cost of doing this would be 2.52% of the purchase price.
The Federal Reserve will not allow interest rates to remain high because federal finances would then blow up.
And no marching in the streets. People deserve what they won’t fight back at. The current generation would have lost the Revolutionary War. Hell, they wouldn’t have fought one.
Mortgages could have two interest rates, the payment rate and the principle balance increase rate.
Instead of a 6% payment rate mortgage, a 4% payment rate and 2% principle balance increase rate mortgage could be used.
There were also FHA 245 loans back in the early 1980s. These as I remember did this for a few years and were available to mortgagors likely to get higher incomes in the near future.
Houses are selling fast, unless in poor shape or otherwise undesirable.
People are trading in their risky tech stocks for brick & stick houses.
Why is the NYT still in business?
they should force people to spend money they dont have
you know, like the govt does
hey i think you have a new gas pump sticker
biden voter price: $10.99
Trump voter price: $1.99
negative amortization
yeah those are fun
you owe more every month
I drove by a new, middle class house development in an outlying suburb (small town) today. Looked like one block of houses, and it’s almost finished. For the local real estate people who invested in having it built, that’s going to really hurt.
We’ll have nothing and like it.
Oh, you believe that we are actually voting and electing politicians.... that's cute....
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