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Fed Rate increase

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Fed raises rate with loan demand still at low levels. What I’m I missing Cullen ?

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Posted by mpstrunk
Posted on 12/14/2016 4:57 PM
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Who knows what they’re doing. My general view is that Fed rate changes don’t really change anything that much anyhow. So they’re just doing something to make it look like they deserve their jobs. Who knows?

In fact, I am becoming more convinced that a rate hike in this environment could actually exacerbate the housing boom as it’s creating a feeling of opportunity loss for those who haven’t locked in a cheap mortgage yet. This would also be consistent with what happened in 2003-2007 as the Fed rose rates they actually exacerbated the demand for housing.

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Cullen Roche Posted by Cullen Roche
Answered on 12/16/2016 1:01 PM
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    I continue to be a little surprised at the angst (in the press) about the recent increase in mortgage rates. For example, today’s WSJ headline: “Fed Move Takes Toll on Mortgages”. The 4.38% average for 30-year fixed rate mortgages – the highest sine 2014 (oh my!) is still quite low by historical standards.

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    Posted by Steve W
    Answered on 12/19/2016 2:43 PM
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      Modified Taylor Rule.

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      Posted by MachineGhost
      Answered on 12/27/2016 2:58 AM
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