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To: millenial4freedom

Most bankers are predicting at LEAST another 150 point rise in Fed Funds Rate over the next few months

That could take mortgage rates to 7% or higher.

The average monthly payment on an average home mortgage now is already 70% higher than a year ago.

Imagine if it is double, or more?

Of course housing will crash.


9 posted on 09/15/2022 10:40:55 AM PDT by PGR88
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To: PGR88

“Of course housing will crash.”

As it should. Normal economies do not have constantly soaring housing prices while wages remain stagnant for four decades.


23 posted on 09/15/2022 11:24:40 AM PDT by Boogieman
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To: PGR88

Mortgage rates are more influenced by 10 year bonds than the short term rates, which are impacted by the FFR. I don’t think its likely mortgage rates go up much further unless people begin to think the Fed needs to take rates up 6-7% for several years. Keep an eye on the 10 year US Treasury rate, which is what the mortgage rates typically are indexed to


25 posted on 09/15/2022 11:38:56 AM PDT by rb22982
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To: PGR88

Probably also worth noting the current rates for mortgages already reflect the market expectation of a 4% FFR - which you can already see in the 1 year US treasury yield of 3.99% right now. For rates to go higher, the next 2 increases won’t cause it - they’ll have to believe the Fed will go even higher and for longer.


26 posted on 09/15/2022 11:40:08 AM PDT by rb22982
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To: PGR88

The only thing worse ( evil ) than high inflation is purposely crashing the economy to “fix” it.


44 posted on 09/16/2022 8:19:03 PM PDT by central_va (I won't be reconstructed and I do not give a damn...)
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