Quote:
Originally Posted by Aces4
The Fed's head is on straight. If one wants free money they should save and use their own money. Prior levels were in the 5-8% range until recession mess they needed to avoid.
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So let me get this straight. Rates were in the 3's and 2's for a few years when we
weren't in a recession, but we needed to jack them up to 'avoid' a recession? So they jacked them up to 7% because of excessive federal spending and inflation. And when inflation came back under control, they made a couple 25 and 50 basis point cuts then halted with a slightly different explanation each time about avoiding the cuts.
So why now with inflation at stable lows, a stalled housing market, and pricing for even starter homes being out of reach, the Fed continues to artificially maintain a higher rate.
Sure, that makes all the sense in the world.
Look, we don't expect seeing 2% rates again, but 7% given the current patterns being artificially hiked doesn't make sense either. Something in the 5's would probably satisfy others and provide some needed stimulus to the RE markets. It's not about saving for a house or cheap money, but it is about affordability differences removing people from the market that isn't doing anyone any favors.