UnrealizedPotential
Thinks s/he gets paid by the post
- Joined
- May 21, 2014
- Messages
- 1,390
My guess would be that the Fed is afraid of disrupting the economic recovery if it raises rates too far or too fast and especially too soon.Very interesting thread.
Here's a related question.
When I bought my first home on July 1, 1994, a 30 year fixed was 9.25%
adjustable 6.25%.
I had zero real estate experience up to that point. Every single person I asked told me to lock in the 9.25%. Luckily, I went full on contrarian & chose the adjustable.
Someone can correct me if I'm wrong, but if memory serves, the economy was doing just fine.
Why is it that 27 years later, with rates about 1/3 what they were then, do we have a federal reserve that seems terrified to raise interest rates a measly 25 basis points ?
What does that say about the underlying economy ?
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