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Fed raises interest rates by a half point for first time in 20 years as it ratchets up inflation fight (1 Viewer)

American

American

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American said:
www.foxbusiness.com

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 www.foxbusiness.com

There goes the housing industry.
Click to expand...
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.
 
Thank you Donald…
 
American said:
www.foxbusiness.com

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 www.foxbusiness.com

There goes the housing industry.
Click to expand...
Lol, bitch about inflation, bitch about trying to do something about inflation. So typical of some.
 
American said:
www.foxbusiness.com

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 www.foxbusiness.com

There goes the housing industry.
Click to expand...
This should have happened months ago.
 
American said:
www.foxbusiness.com

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 www.foxbusiness.com

There goes the housing industry.
Click to expand...
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.
 
mrjurrs said:
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.
Click to expand...
Not only housing will be impacted by this. Car loans, credit card rates, everything tied to the prime rate is going to go up.
 
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!
 
Moon said:
Not only housing will be impacted by this. Car loans, credit card rates, everything tied to the prime rate is going to go up.
Click to expand...
Not quite. The prime rate is just one of the rates that will be impacted by the Open Market Operations of the Fed.
 
Today is my 33rd anniversary of living on this property. When I closed, in 1989, the interest rate was over 13%.
 
Moon said:
Not only housing will be impacted by this. Car loans, credit card rates, everything tied to the prime rate is going to go up.
Click to expand...
Yes. That's what happens when interest rate go up. What suggestions do you have for stemming inflation?
 
Rexedgar said:
Today is my 33rd anniversary of living on this property. When I closed, in 1989, the interest rate was over 13%.
Click to expand...
And who was the prez for eight years before that? And wasn't inflation under that prez pretty high for a while?
 
Moon said:
Not only housing will be impacted by this. Car loans, credit card rates, everything tied to the prime rate is going to go up.
Click to expand...
Well something has to squeeze the inflation out of housing and vehicles.
 
Rexedgar said:
Today is my 33rd anniversary of living on this property. When I closed, in 1989, the interest rate was over 13%.
Click to expand...
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.
 
reflechissez said:
Yes. That's what happens when interest rate go up. What suggestions do you have for stemming inflation?
Click to expand...
This is the only path forward now. Not sure why you think I was claiming anything different.
 
ALiberalModerate said:
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.
Click to expand...
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.
 
The fed fighting inflation is like Häagen-Dazs fighting obesity.
 
American said:
www.foxbusiness.com

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 www.foxbusiness.com

There goes the housing industry.
Click to expand...
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.
 
A historical snapshot of the 30 year fixed mortgage rate in the U.S. :

fredgraph.png
 
American said:
www.foxbusiness.com

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 www.foxbusiness.com

There goes the housing industry.
Click to expand...

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