Posted on 02/16/2022 2:02:26 PM PST by Browns Ultra Fan
Jay “The Revelator” Powell has told us in The Fed minutes that The Fed is ready to raise rates and shrink the balance “soon.” Sort of like saying “Shock and Awe” is coming.
The minutes of the recent Fed Open Market Committee (FOMC) have been released. Yet they only mention “soon.” Just like when my wife asks me to take out the trash and I reply “soon.” At which point she realizes that I have no intention of doing it.
The REAL 10-year Treasury yield is now -5.44%.
And the 30-year mortgage rate has risen to 4.23% while the REAL 30-year mortgage rate has fallen to -3.7%.
Jay The Revelator sings “Soon!”
(Excerpt) Read more at confoundedinterest.net ...
Back in the early 80’s mortgage rates were between 10 and 15% and people were still buying.
Wait. 4.23% is hardly a high mortgage rate. 13% is a high mortgage rate. People might be used to rates under 7% but they aren’t high rates.
The only way to Kill this In inflation is a rise of at least 1000 basis points this year. Of course that will cause a complete detonation of the federal budget.
Yes but..the prices were much lower. The payments stay about the same with everything being equal.
My first mortgage was 10% in 1992
Back in the early 80’s mortgage rates were between 10 and 15% and people were still buying.
Our first home was 13% interest rate. We put $5,000 down on a $19,000 brick home on the Hudson River in 1976. The bank almost didn’t give us the loan. We sold it in 1986 for $33,00 and after taxes, fees, and commissions, we walked away with $8,000 to put down on our new home in NH with a 6 percent interest rate.
Much worse, the budget will implode. Medicare and Medicaid drastically cut back or eliminated , SS maybe saved, Austerity plan and Democrats and Republicans will have no choice but to balance the budget and pay down debt or Government Collapses, and Interest payments on the Debt go up.
They are with the price inflation in homes in the last decade.
Makes them much less affordable to new buyers
I’ve got cash and am not going to give it away to fund someone else’s retirement.
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