Interest rates are up again.

by Fisherman 11 Replies latest jw friends

  • Fisherman
    Fisherman

    Any economy people here who can explain how this will affect US economy?

  • sloppyjoe2
    sloppyjoe2

    Rates were just raised .25 basis points or a quarter percent. This will raise interest rates for loans. Interest rates on CDs, money markets, and savings accounts will go up slightly. The stock market while no one can predict exactly where it will go will likely trend higher. It is still the only game in town to get a return on your money since stable investments barely give 1 percent.

    The fed is expected to raise two more times this year, so that is what the stock markets expect. The fed needs to raise rates so that in the future another recession occurs, they're able to cut interest rates to help support the economy. It's important that the fed continues to raise.

  • wifibandit
    wifibandit

    It will cost a bit more to borrow money. Your variable rate Credit Card %rate will go up.

    I'm working on step 1. Emergency Fund.


  • Fisherman
    Fisherman

    I understand that it results in higher interest rates, but how about property value, etc.

  • sloppyjoe2
    sloppyjoe2

    Property values are loosely based on interest rates but really depend on demand. Historically higher interest rates hurt property value because they make getting a loan more difficult. To get a buyer home prices are reduced to bring in a buyer that can afford the total loan with the interest rate. In a booming economy though, neither will matter because buyers will buy regardless of the rate.

  • Spoletta
    Spoletta

    Since poorer people will be priced out of the housing market, they can use the extra money to buy both iphones and health insurance.

  • baker
    baker

    As the Fed continues to raise rates in 2017, higher mortgage rates will follow. If the prospect of higher mortgage rates compels you to a home sooner than later, you won't be alone.

    "Higher mortgage rates could push buyers off the fence -- increasing demand, increasing prices and increasing home equity so that more people can sell their homes," says Joel Naroff, president of Naroff Economic Advisors in Holland, Pennsylvania.



    Read more: http://www.bankrate.com/finance/federal-reserve/benefits-higher-interest-rates-from-federal-reserve-1.aspx#ixzz4bse28yPQ
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  • NewYork44M
    NewYork44M

    You need to put this into perspective. In 1979 my first mortgage was 8.5%. A few years later interest rate peaked well into the teens. I had a 12.5% mortgage interest rate for a few years.

    We still have interest rates that are the lowest in generations, if not the history of modern finance. I have no idea what will happen over the next few years, but we are still seeing historically low-interest rates.

  • sloppyjoe2
    sloppyjoe2

    @NewYork44M I can tell you where it ends for the stock market. We very well will probably end up in the largest stock market bubble in history. The market has inflated on the Fed keeping interest rates low. It created artificial bull market runs, and continues to. I have no idea when it will happen but, one day, we go back way down and pay for this drunken party.

  • Fisherman
    Fisherman

    ny44 in 1979 a house in nyc was 40 or 50 thousand dollarr or less. In 1983 from 80,000 to 120- and I mean a real houses!

    today a house in nyc is a million dollars or more.

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