Consider that the Ronald Reagan boom fueled by tax cuts and defense spending started when interest rates and unemployment had nowhere to go but down, whereas Federal Reserve economists now think the U.S. is close to full employment and the 10-year Treasury yield sank to a historic low of 1.34% in July. In other words, rates have nowhere to go but up and the jobless rate may not be able to fall much without increasing inflation pressure.
While it's true that rates are long overdue to go up, the notion that Federal Reserve economists think we're close to full employment with over 94 million people out of the workforce tells you everything you need to know about the pathetic direction of the Fed during Obama's tenure.
Also, with a debt fueled economy teetering on collapse, any rate increase could push it over the edge. And people spending now, via simply taking on more debt, is kinda nuts.
I’ve said to people that, because people buy a house payment, rather than a purchase price, the best time to buy a house is when interest rates are high. Prices are depressed and when rates do go down you can refinance. And the value of your home will also go up.
Taking on debt right now by buying a house at these rates almost guarantees bankruptcy in the future, unless you are willing to, when rates go up and prices go down, take a $200,000 hit on your house like so many did in 2008. But this time I think it will be MUCH worse.