I keep thinking he can’t top himself. The thing is lowering interest rates is not good for investment income. Also I thought rates were fairly decent right now. The other question is will lowering interest rates mean more people being able to purchase homes? Or will it instead lead to more new homeowners who really can’t afford any cost beyond the PITI resulting in multiple foreclosures in a few years?
And can anyone tell me is there a correlation between lower interest rates and people increasing their credit card debt?
Mortgage rates are tied to the 10 year treasury — which is a fairly pure (gadgets aside) market function based on demand. The Fed doesn’t control this.
The “prime rate” is really limited to institutional lending. This means it *does* impact credit card rates, savings interest rates (in the opposite direction). I suppose HELOCs, too.
But not mortgages.