Don’t forget Blackrock.
On the bright side, my e-mail box is going to stop filling with those refi offers from Quicken Loans and others. Plus I am locked into a 2.75% APR fixed.
What’s the surprise? People don’t refinance when interests rates rise. Since 1992, I’ve been blaming the Federal Reserve for every recession since 1973. They haven’t once achieved a “soft landing” and in every instance, crashed the plane nose-first into the ground. (They don’t realize that the tool at their disposal, overnight lending, is like having landing gear on top of the plane.) But that doesn’t mean that the Federal Reserve needs to continually lower interest rates.
The real estate market was way over heated to begin with. Pouring a little water on in may not be a bad thing.
There is no way that the Fed will increase rates high enough to actually stop inflation. Currently, the federal funds rate is less than 0.1%. In the late 70s and early 80s, it took raising the federal funds rate all the way up to 19% to stop inflation. Raising the funds rate even a fraction of that amount would crash the entire U.S. economy, which is now dependent on extremely low interest rates and an endless supply of OPM (other people’s money) flowing out of the federal government.
Small rate increases, which is all that the Fed will do, will only give us Jimmy Carter style stagflation, delaying and exacerbating the inevitable crash. Inflation is only going to get worse until the economy crashes.
https://www.macrotrends.net/2015/fed-funds-rate-historical-chart
Yeh, there’s no houses to buy. Our neighborhood sells in one day with bidding wars. Lots of investors paying cash so no mortgage.
The housing and mortgage markets need to crash. They have gone out of reason.
“Let’s see if Thurston Powell The Great Magician can raise rates and NOT crash the housing and mortgage markets.”
They are mutually exclusive.
And rates need to go up .5% per quarter until the fire is out.