Raising interest rates will NOT lower inflation. It will only help the rich get richer. HISTORY!!
The poor and the underserved will suffer the most from rising interest rates. Stopping the gouging by corporate America will stop inflation and rolling back some prices AND/OR collecting windfall profit taxes from gouging companies will.
The interest rate should go up. The mortgage will stay the same unless you have a variable interest rate. Obviously new homeowners will see a higher interest rate but nothing like the 70-80s. I dont think 3/4 of a percent will destroy anybody. And if it lowers price of goods, that will help everyone.
This will have some good effects. My issue is that they should have been doing it in 2021 when we had the best economic year in US history.
As far as home ownership, it's going to have the additional positive effect of cooling the housing market off some. I think we're already seeing that, the bidding wars are starting to wane. Values won't go down, because it's still a supply and demand driven thing and supply is still way too low, but the 15% increases a year are going to end. If you're in your house, stay the heck in your house! I have a 3.25% interest rate and you'd need a crowbar and a stick of dynamite to get me to leave right now.
We have the same rate 3.25%. Back in 2003 we had an interest rate of 8.5% we paid double and got a lot less. My children will get my home.
Not sure how that was managed. Partner pulled that one off.
Not moving, no way, nuh uh. I jokingly tell him this house will be his tomb.
We put a lot down to begin with - 30%. Then home prices got stupid, and our valuation went up 40% in 2.5 years. So at present, we're sitting at like 75% equity.
Suffice to say, the bank wanted our business.
At 1.99% I thought it was a scam to get me out of the 3.25%.
Now, I know it was real.
Everything the house goes up $50,000, I say that's it, time to sell and build a tiny home to retire in. Then, I think I'm to tired to move and it's not worth the money.
Very, very. I don't know if rate hikes will change that.
On 4th of July, one agent puts American flags at the edge of everyone's lawn with candies and her card. Others have put things like scented candles on the porch with cards. Just the most random things.
I did like the candles, though.
But, so much of the inflationary pressure is energy driven, I'm not sure we'll see the same downward effect as in times past.
We agree on the theoretical, but I'm not sure it's going to help much.
Getting energy down would be more impactful, IMO.
They've been really low for a long time, and the low interest rates have facilitated a massive wave of financed acquisitions by the wealthy and hurt small investors and savers.
In point of fact, I DO think raising interest rates will help lower inflation, but since this inflation is largely driven by supply chain ripples, it's mostly just gonna take time.
Supply chains are getting straightened out, energy prices are coming down. It's going to look like the rate hikes worked to people, but the hikes really are long term solutions that won't have the effects for a some time.
Honestly, things are starting to look hopeful for inflation. You could honestly see it fall back under 5% by the Fall. If inflation isn't a big concern anymore in November, the Dems could be looking at historic gains in both houses of Congress for a party already in piower.
Energy prices are finally starting to return to sanity. Those have been driving inflation pretty hard, so there's a good chance we'll see significant improvement just from that.
Is when you can get 5-6% return on a savings account, or risk the stock market to get 7-10% going the safe way of a savings account is a better idea for some. So this would take away some money from the stock market which might cool it off and level it out some.
like the big picture entire financial business model has changed dramatically over the past 40 years. The stock market rules. Too many people have money invested in the stock market in one form or another these days. Whatever works best for the stock market will drive the interest markets, not local bank lending. I'm thinking we will continue to see a 4 to 5 or greater point disparity between savings interest and consumer-borrower interest rates. .... Hope I'm wrong, but ...
Enforce the Sherman Anti-trust Act, and break all these big actors up in every source of commerce.
from public pressure and corporations get once and for all roped in?! Will that ever even happen?
Theyve been too low for too long. Small increases wont hurt the average person.
will benefit from higher rates. And thats how it should be.