Author Topic: Fed raises rates  (Read 11903 times)

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Offline USCTrojanCPA

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Re: Fed raises rates
« Reply #30 on: December 27, 2016, 09:25:09 PM »
IMO price drops will trail the perception of rising future rates, just as the perception of deflation stymies consumer spending.  So short term, the perception of rising rates will fuel an increase in the willingness to pay, but long term, as rates actually do rise, prices will have to fall.

Yeah, I can see buyer activity/sales pick up as buyer worry about future rising rates.  I can see it now...."buy now or be priced out forever" will be used again by realtards trying to "encourage and motivate" buyers. 
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Offline lnc

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Re: Fed raises rates
« Reply #31 on: December 28, 2016, 09:53:18 AM »
IMO price drops will trail the perception of rising future rates, just as the perception of deflation stymies consumer spending.  So short term, the perception of rising rates will fuel an increase in the willingness to pay, but long term, as rates actually do rise, prices will have to fall.

Yeah, I can see buyer activity/sales pick up as buyer worry about future rising rates.  I can see it now...."buy now or be priced out forever" will be used again by realtards trying to "encourage and motivate" buyers. 

Good call, buyer frenzy did happened in some market. 

http://www.seattletimes.com/business/real-estate/panicking-seattle-home-buyers-spooked-by-rising-interest-rates-rush-to-buy/

Offline eyephone

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Offline USCTrojanCPA

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Re: Fed raises rates
« Reply #33 on: December 28, 2016, 01:15:21 PM »
https://www.bloomberg.com/news/articles/2016-12-28/pending-u-s-existing-home-sales-fall-on-higher-mortgage-rates



It makes sense that pending home sales falls from Oct to Nov due to seasonality.  The more important thing is that pending sales were UP 1.4 from Nov 2015.  On a related topic, we are getting down to about 300 active listing on MLS (326 as of 1pm tomorrow).  That's around 2 months of resale inventory (even though there some new homes listed on MLS).  There's slim pickings out there right now.
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Offline eyephone

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Offline eyephone

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Re: Fed raises rates
« Reply #35 on: October 10, 2018, 02:46:46 PM »
“Trump says the Federal Reserve has 'gone crazy' by continuing to raise interest rates

"I think the Fed is making a mistake. They are so tight. I think the Fed has gone crazy," the president said after walking off Air Force One in Erie, Pennsylvania for a rally.”

https://www.cnbc.com/2018/10/10/trump-says-the-federal-reserve-has-gone-crazy.html


Offline morekaos

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Re: Fed raises rates
« Reply #36 on: October 10, 2018, 07:26:30 PM »
Every president from Carter to Bush to Clinton complained about the Fed raising rates...nothing new there.

Offline morekaos

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Re: Fed raises rates
« Reply #37 on: October 18, 2018, 08:55:20 AM »
To my previous point...

Greenspan to the Fed: 'Put earmuffs on,' Trump's criticism is nothing new for US presidents

Asked if he ever received input from any of the four presidents under whom he served, Greenspan said it happened "all the time."

"You'll find every president has an insight into how the markets work and where interest ought to be, which is always superior to that of the Federal Open Market Committee," he said in an interview on "Squawk Box. "

Greenspan served as chairman from 1987-2006 under Presidents Ronald Reagan, George H.W. Bush, Bill Clinton and George W. Bush.

https://www.cnbc.com/2018/10/18/greenspan-says-that-before-trump-other-presidents-criticized-fed-policy-all-the-time.html

Offline eyephone

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Re: Fed raises rates
« Reply #38 on: October 18, 2018, 08:58:43 AM »
He should keep tabs on his own cabinet members.

Offline zubs

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Re: Fed raises rates
« Reply #39 on: October 18, 2018, 10:16:18 AM »
GREENSPAN missed the credit default swap problem that ran up realestate to astronomical levels.  He left right at the peak in 2006.  If the head of the federal reserve couldn't see the problem back then, I don't believe anybody can.

Everyone is a retard working off of luck and pretending it's skill.


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Offline OCtoSV

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Re: Fed raises rates
« Reply #40 on: October 18, 2018, 12:53:19 PM »
GREENSPAN missed the credit default swap problem that ran up realestate to astronomical levels.  He left right at the peak in 2006.  If the head of the federal reserve couldn't see the problem back then, I don't believe anybody can.

Everyone is a retard working off of luck and pretending it's skill.


FYI: $1 billion dollar lottery this week!!!..get some.

Agreed, and reminds me of my first RE purchase (east coast) in 2003. My oldest friend was buying at the same time (also east coast), and he is a lawyer working for one of the major NY banks. He chose a fixed rate slightly higher than my 4.375 ARM, saying he didn't want the interest rate risk. Meanwhile his job at the time  was focused on creating derivatives. I'm not sure how long he waited to refi as interest rates declined over the next several years, but as someone in the middle of creating the mess I was surprised he didn't have a more informed outlook when choosing that fixed rate loan.

Offline paydawg

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Re: Fed raises rates
« Reply #41 on: October 18, 2018, 02:40:20 PM »
Looks like Goldman Sachs is expecting 5 more rate hikes thru the end of 2019. 
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