Fed raises interest rates by a half point for first time in 20 years as it ratchets up inflation fight

[American]

Fed raises interest rates by a half point for first time in 20 years as it ratchets up inflation fight

The Federal Reserve said Wednesday it would raise interest rates by a half point for the first time in two decades as policymakers ramp up their fight to cool red-hot inflation, a move that threatens to slow U.S. economic growth and exacerbate financial pressure on Americans.

www.foxbusiness.com

There goes the housing industry.

 

[Moon]

Fed raises interest rates by a half point for first time in 20 years as it ratchets up inflation fight

The Federal Reserve said Wednesday it would raise interest rates by a half point for the first time in two decades as policymakers ramp up their fight to cool red-hot inflation, a move that threatens to slow U.S. economic growth and exacerbate financial pressure on Americans.

www.foxbusiness.com

There goes the housing industry.

When we bought our fist house we got a sweet mortgage rate of 8.125%. I hope we don’t end up back at those rates.

 

[WIGDViking]

Thank you Donald…

 

[bongsaway]

Fed raises interest rates by a half point for first time in 20 years as it ratchets up inflation fight

The Federal Reserve said Wednesday it would raise interest rates by a half point for the first time in two decades as policymakers ramp up their fight to cool red-hot inflation, a move that threatens to slow U.S. economic growth and exacerbate financial pressure on Americans.

www.foxbusiness.com

There goes the housing industry.

Lol, bitch about inflation, bitch about trying to do something about inflation. So typical of some.

 

[reflechissez]

Fed raises interest rates by a half point for first time in 20 years as it ratchets up inflation fight

The Federal Reserve said Wednesday it would raise interest rates by a half point for the first time in two decades as policymakers ramp up their fight to cool red-hot inflation, a move that threatens to slow U.S. economic growth and exacerbate financial pressure on Americans.

www.foxbusiness.com

There goes the housing industry.

How so?

 

[Gateman_Wen]

Fed raises interest rates by a half point for first time in 20 years as it ratchets up inflation fight

The Federal Reserve said Wednesday it would raise interest rates by a half point for the first time in two decades as policymakers ramp up their fight to cool red-hot inflation, a move that threatens to slow U.S. economic growth and exacerbate financial pressure on Americans.

www.foxbusiness.com

There goes the housing industry.

This should have happened months ago.

 

[mrjurrs]

Fed raises interest rates by a half point for first time in 20 years as it ratchets up inflation fight

The Federal Reserve said Wednesday it would raise interest rates by a half point for the first time in two decades as policymakers ramp up their fight to cool red-hot inflation, a move that threatens to slow U.S. economic growth and exacerbate financial pressure on Americans.

www.foxbusiness.com

There goes the housing industry.

Uhh, no. The only thing increasing interest means is higher input costs and smaller universes of qualified buyers. Prices and sales will fall. If the 2008-9 crisis didn't kill the housing industry this won't either.

 

[Moon]

Uhh, no. The only thing increasing interest means is higher input costs and smaller universes of qualified buyers. Prices and sales will fall. If the 2008-9 crisis didn't kill the housing industry this won't either.

Not only housing will be impacted by this. Car loans, credit card rates, everything tied to the prime rate is going to go up.

 

[beefheart]

I bought my house (from the rest of the family when dad died), I had 5% rate.

I lowered it considerably by paying off the 30 year loan in 8 years and 8 months. More fun than a re-fi!

 

[mrjurrs]

Not only housing will be impacted by this. Car loans, credit card rates, everything tied to the prime rate is going to go up.

Not quite. The prime rate is just one of the rates that will be impacted by the Open Market Operations of the Fed.

 

[Chase Morgan]

Market doesn't seem to mind.

S&P 500 currently up big … 2.3%.

 

[Rexedgar]

Today is my 33rd anniversary of living on this property. When I closed, in 1989, the interest rate was over 13%.

 

[reflechissez]

Not only housing will be impacted by this. Car loans, credit card rates, everything tied to the prime rate is going to go up.

Yes. That's what happens when interest rate go up. What suggestions do you have for stemming inflation?

 

[bongsaway]

Today is my 33rd anniversary of living on this property. When I closed, in 1989, the interest rate was over 13%.

And who was the prez for eight years before that? And wasn't inflation under that prez pretty high for a while?

 

[ALiberalModerate]

Not only housing will be impacted by this. Car loans, credit card rates, everything tied to the prime rate is going to go up.

Well something has to squeeze the inflation out of housing and vehicles.

 

[ALiberalModerate]

Today is my 33rd anniversary of living on this property. When I closed, in 1989, the interest rate was over 13%.

I think we are at 2.5% on our house. We refinanced into a 15 year a couple of years ago when rates were really low. I have no idea what houses were in 1989, but assuming a house was $100,000 then, with 2.5% interest on a 15 year loan, you would pay about $20,000 in interest over the life of the loan. With 13% interest, you would pay about $130,000 in interest over the life of the loan and your payment would be twice as high. Crazy when you think about it.

 

[Moon]

Yes. That's what happens when interest rate go up. What suggestions do you have for stemming inflation?

This is the only path forward now. Not sure why you think I was claiming anything different.

 

[reflechissez]

I think we are at 2.5% on our house. We refinanced into a 15 year a couple of years ago when rates were really low. I have no idea what houses were in 1989, but assuming a house was $100,000 then, with 2.5% interest on a 15 year loan, you would pay about $20,000 in interest over the life of the loan. With 13% interest, you would pay about $130,000 in interest over the life of the loan and your payment would be twice as high. Crazy when you think about it.

Prices adjust in response to higher rates (though not linearly). I'd rather have a lower price and a higher rate since everything (taxes, insurance, etc) is geared off the price.

 

[aociswundumho]

The fed fighting inflation is like Häagen-Dazs fighting obesity.

 

[eohrnberger]

Fed raises interest rates by a half point for first time in 20 years as it ratchets up inflation fight

The Federal Reserve said Wednesday it would raise interest rates by a half point for the first time in two decades as policymakers ramp up their fight to cool red-hot inflation, a move that threatens to slow U.S. economic growth and exacerbate financial pressure on Americans.

www.foxbusiness.com

There goes the housing industry.

Carter like stagflation here we come! 🤬🤬🤬🤬

The federal government spent way too much, and inject far too much currency, by a click of the mouse, into the economy.

 

[reflechissez]

The fed fighting inflation is like Häagen-Dazs fighting obesity.

How so?

 

[Kushinator]

A historical snapshot of the 30 year fixed mortgage rate in the U.S. :

 

[jonny5]

Fed raises interest rates by a half point for first time in 20 years as it ratchets up inflation fight

The Federal Reserve said Wednesday it would raise interest rates by a half point for the first time in two decades as policymakers ramp up their fight to cool red-hot inflation, a move that threatens to slow U.S. economic growth and exacerbate financial pressure on Americans.

www.foxbusiness.com

There goes the housing industry.

Good, should help slow down inflation, but itll also slow growth and we are already negative. But govt will keep adding trillions in debt, now at higher interest rates, so who knows what the end result is. Too many people messing with too many things for too many different reasons.

 

[jonny5]

Not only housing will be impacted by this. Car loans, credit card rates, everything tied to the prime rate is going to go up.

Good time to be debt free.

 

[trouble13]

Everyone needs to chill out. I have it on good authority that this bit of inflation we are feeling is only transitory.