Feds are keeping interest rates the same for now. Highest in 23 years. I feel for folks trying to purchase their first home or any home.
No real reason other then good Ole fashion greed to keep things high. The common working stiff needs a break.
Sarge

In 1972 I shopped around for a 20 yr fixed mortgage. Note I said 20 yr. Good credit, 20% down. Best I could do was 7.25%. Suck it up buttercup. These rates are nothing new!

Interest rates are not high. They are normal. These are the normal rates that existed prior to going to zero and staying there or near there for 14 years to boost debt. Some of us working men are savers, not borrowers and are now earning reasonable interest again.

If the fed keeps interest rates normal, next time the economy needs a boost they can just cut rates, not print money. The fed should follow thier dual mandate and ignore the mob.

Look and see what interest rates where in the late 70-83. Granted items didn’t cost like now but minimal wage was also 2.90 cents Went to 3.10 oh yes interest was 19%

Got to manipulate the market somehow. I always laugh at the money minds. Interest went to 5% market plunged. Some one starts a “rumor” it’s going down to five , same rate and it sets records! Lol

This

6.5 % when I built mine , never cried about it . Refinanced twice and paid off a quarter of a million bucks in ten years but it took a ton of work hours and discipline

What you guys are not taking into account is the initial cost. 20% on a new build that cost 40-50 thousand is much different than 7% on a new home that now costs at a minimum of $250,000, and more than likely $350,000+ depending upon where you live and in many areas is much much higher than that. I don’t know the answer, just it is not the same buttercup. I have no stake in the game, I payed off my forever home years ago…. Just my .02

Exactly !

Yeah, but income to pay mortgages is higher now too.

Household income was 25k on my 50k loan. (Built it myself, or it would have been 100k loan) So 2-4x annual income.

The high cost of a home is a direct result of 14 years of below normal interest rates. It is the law of unintended consequences.

Interest rates are too low

This also affects small business and the ag sector, net income isn’t as easy to come by now in farming as it was in the 60’s and early 70’s, I do believe farmers made more money then.

First home I bought was the cheapest but the highest payment with 16% interest. Rates should be higher based on inflation.

Well, as predicted. Some will love it, some will not. All those gains are being taken away in form or the other. Just depends on your perspective.
I on the other hand wasn't posting my situation. Just stating the news and facts.
Sarge

You can write off interest but you can't write off principle. It would be better to have higher rates and lower prices.

Hard to believe that farmers here are somehow making less. Bright shiny new his/her Duramaxes/Yukon Denali’s every year or two. Bright new shiny trucks and cars are not the teachers, but of the farmers 15-18 year old kids in the school parking lots. I realize that this isn’t Mayberry anymore, but even my elderly parents see that things are skewed out of control… I’m not an economist, and I’d wager there are few if any on this site. Something needs to be done, and I’m not believing that the govt can fix anything. All I’ve ever seen them meddle in has went down the toilet…. Maybe a crash is what is needed and then seize that opportunity to enact change???

Low interest rates have helped create a culture of borrowing and that is for almost anything these days. Being willing or able to borrow large sums probably causes as much or more inflation as all the other "usual suspects".
Credit card debt at an all time high.
Back when we bought our house we could not exceed 25% of our monthly income, rates were 8.5 and we needed 20% down. Three years later interest rates hit 13.5%. Many young working families are trying to buy homes as rent rates are very high. This drives them to compete for houseing which raises prices and with interest rates up over the last couple years we are not seeing the normal lowering of selling prices. What we are seeing is a relatively long window of housig shortages which will put pressure on that market. As we see even more 30 plus year mortgages we are in an era of almost like rent as debts may not be paid off, but some equity gained. Several other countries with limited or expensive housing have several rolled over mortgages on the deed and we may be heading in that direction as well.

Bryce

The consequence of printing money,,,,,,,vote buying



Sadly something like 80% of folks live pay cheque- pay cheque

I have a friend that is President at one of the large national banks. He said Americans debt had quadrupled since November of 2023. People are maxing out CC to live in Bidenomics.....