[kingofbeer]

[QUOTE=Aces4;2452632]

Originally Posted by kingofbeer

I doubt the housing sales will skyrocket. Tariffs are causing consumers and home buyers to worry.[/

Worry about what?

Rising prices. Maybe they might lose their job. Economics 101 again.

[Aces4]

[QUOTE=kingofbeer;2452661]

Originally Posted by Aces4

Rising prices. Maybe they might lose their job. Economics 101 again.

I'd worry more about losing my job because of this country's terrible debt than tariff's. That's called "can't see the forest for the trees" syndrome.

[Pugchief]

Originally Posted by Stu from NYC

Is it possible they are unhappy with the EV they purchased?

Sarcasm Sheldon

I see what you did there....

[Normal]

The Fed Will Not be cutting interest rates anytime soon.

So-called core prices, which exclude volatile measurements of gasoline and food to better assess price growth trends, were up 0.3% from the prior month and 3.1% from a year ago. The annual core figure was hotter than economists' expectations of 3%, while the monthly figure was in line with the estimate.

[Caymus]

Home prices have increased much more than incomes of the years. CNBC reported that the average age of first time buyers was in the 20's in 1980 and is now 38. They will need very low rates to afford a home.

[Aces4]

Originally Posted by Caymus

Home prices have increased much more than incomes of the years. CNBC reported that the average age of first time buyers was in the 20's in 1980 and is now 38. They will need very low rates to afford a home.

They will need lower priced homes not very low interest rates and thanks to severe inflation which will recur will low interest rates, it ain't gonna happen.

[kkingston57]

Originally Posted by Stu from NYC

As an Economics professor once said lets get a dozen economists in a room to discuss this issue and we will get a minimum of 13 different opinions.

Best answer. We now have 3 pages of opinions and a lot of them coming from people who like getting 4-5% on bullet proof investments like CDs

[kkingston57]

Originally Posted by Normal

The Fed cut rates last fall and it resulted in lending rates actually going up slightly. It will take a lot more than a quarter or half point cut to turn the housing market around.

1/2 of the problem is the rates. Homes are still out of reach for some home buyers. Watched an old All in the Family show and Archie could live in a small home and was making $5.50 an hour

[kkingston57]

Originally Posted by Aces4

Don't you mean many businesses in Germany will be going out of business? It really pays to shop American.

Problem is that there are probably NO American companies which make bikes. Just bought an American made bike rack. Well built but paid $500 more than something from China

[Aces4]

Originally Posted by kkingston57

Best answer. We now have 3 pages of opinions and a lot of them coming from people who like getting 4-5% on bullet proof investments like CDs

And a lot of the opinions are coming from players in the stock market hunched over their computers who hope prices for everything keep rising for their own profits. I would suspect this time around, if interest rates drop to the basement, more money will be applied to real estate purchases than CD's. There is only so much land and let the borrowers find cheap money somewhere else. The lesson learned wil be it doesn't pay to save.

[Aces4]

Originally Posted by kkingston57

Problem is that there are probably NO American companies which make bikes. Just bought an American made bike rack. Well built but paid $500 more than something from China

Oh for heavens sake, per AI:
Several well-known American companies manufacture bicycles. Some of the most prominent include Trek, Specialized, Cannondale, and Schwinn. Additionally, brands like SE Bikes, Mongoose, and Santa Cruz are also popular choices. For custom or smaller-scale production, companies like Allied Cycle Works, Reeb Cycles, and Waterford Precision Cycles are known for their American-made bicycles. You may have paid more for your bike rack but I'll bet it lasts longer than a Chinese rack.

[kkingston57]

Originally Posted by Bwanajim

There should be an independent agency, but noticed they lowered interest rates three times last year when the inflation was worse.
This year , they refused to lower them at all.
If they lower them even a quarter percent housing sales will skyrocket and the economy will be better off. That's simple economics 101.

Economy might soar. In a soaring economy inflation goes up and people who are hurt most are seniors and/or others living on fixed incomes. FED is an independent agency

[Whatnext]

Originally Posted by Bwanajim

My girlfriend bought her house here in February 2022 and paid 3% interest rate. I bought my house eight months later and my interest rate would've been 8%.!!! go ahead and tell me there's not a problem.🤷🏼*♂️🤷🏼*♂️
We did not have that kind of a crazy inflation in eight months.
So tell me why? I believe most of us know.
Fortunately I was able to pay cash for my house.

The world was just emerging from Covid restrictions, and inflation became a world wide problem.
The US was one of the first to recover from the downturn

[Normal]

Originally Posted by kkingston57

1/2 of the problem is the rates. Homes are still out of reach for some home buyers. Watched an old All in the Family show and Archie could live in a small home and was making $5.50 an hour

Tariffs will dictate no rate hikes or rate cuts. Currently the Consumer Price Index CPI is leading the Producer Price Index PPI. If inflation is maintained at 3% the Fed board will never vote to cut rates. They know full well producers will raise their pricing until
they see a progressive inventory balance.

Homes still aren’t priced low enough to traditional trending prior to COVID. In many cases home prices are up by over 100% from just prior to 2019! That all has to come back down. Many economists see the rebalancing in trend to be about 30 points off of a 2019 selling price. This certainly means further reductions in current home prices. Recall, if a home value went up 2-3% per year since 2019, this would still measure far less than a 30% increase in home values from the 2019 demarcation.

[jimhoward]

Originally Posted by kkingston57

1/2 of the problem is the rates. Homes are still out of reach for some home buyers. Watched an old All in the Family show and Archie could live in a small home and was making $5.50 an hour

Homes have always been out of reach for some buyers. The home ownership rate in the US, while down from its peak a few years ago, is slightly higher now than it was in the 1970s. But, the variation is small. It has hovered around 65% for the past 50 years.