The Federal Reserve No Policy Change May Be Cause for Concern
housing market & interest rates
There were no real changes to the Federal Reserve’s policy statement yesterday. I have observed for years that Fed announcement days have been treated as more important than the sum total of all company earnings statements. Why is that? Perhaps because the Fed’s economic manipulations have been more important than the market’s fundamentals since the inception of the Greenspan era.
Why didn’t the Fed change policy/rates …just maybe, NOTHING HAS CHANGED from a year ago. Actually, things are probably worse. There is no recovery to date, it’s all BULL. If things were better they would have pushed rates a little bit. They are the same because you can’t slow down something that IS NOT happening. Further more, if something was happening, explain to me why the unemployment numbers keep going up????
More unemployed, more foreclosures, more bank failures, more uncertainty, more money printed…..more bad, less good!
So, when rates finally rise will the housing market really be better than it was before? I would generally say when mortgage rates hit 7-8% we will be quite a bit worse off and Fannie, Freddie, Ginnie, the Fed, Treasury, FDIC, and FHA will be in a world of trouble dealing with a gamut of bad bonds, foreclosed properties, and no demand. As we all learned not too long ago, persistently low interest rates only encourages those who can’t afford assets to purchase them. Especially so if they feel they can walk away and leave the lender out to hang when rates rise. Even more so when the lender thinks it can walk away and leave the taxpayer out to dry.
Bonita real estate
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The US real estate market has never recovered in a recessionary environment with 10%+ unemployment and record foreclosures. This whole notion of a “recovering housing market” is akin to being in the eye of the storm and saying “all is clear”.
The short version is that the US government is taking on the role of a subprime mortgage lender and subsidizing the real estate market with tax credits, etc. in an effort to artificially prop up housing values. The problem is that the problems (unemployment and foreclosures) will outlast any government actions and in fact the government actions are just stretching out the problems, not solving them.
Clairemont real estate agent
NO ONE IS LISTENING and the bottom line is NO ONE CARES if we lose our home. Is it that hard to help your fellow man in the time of need? I wouldn’t wish our situation on anyone. These last 10 months have been hell for us. So if anyone has an ear to hear what your normal all american family is going through, let them hear. ACTIONS SPEAK LOUDER THAN WORDS. I’ve heard all the words and seen no action.
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In my working class neighborhood it was hard to miss that something went wrong when all the houses tripled in value. No one here got a raise but young families somehow bought homes that we’re half-million dollar fixer-uppers. The only reason the fed, banks, and the government missed it was that they were too busy counting their money to care where it was coming from.
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I wish I had come across the site sooner. Thanks.