Will Interest rates go back down?

[HereWeGo]

1) Interest rates are low, historically speaking.

2) The world economy is unbelievably strong. World consumers may very well be keeping the US economy afloat, through US exports.

I don’t see a slump in US consumption (which would be mitigated by rising US incomes,) causing a global downturn. Now maybe global growth rates might slow, although I have no idea how to quantify the reduction. But a downturn? It seems we are a very great ways from that possibility.

I admit I may be associating too much with the term “downturn”. If by “downturn” you mean “undetermined reduction in growth”, then I retract the previous objection. But if you mean “recession” or the like, then I cannot agree, at least at this time.

[HereWeGo]

1) Interest rates are low, historically speaking.

2) The world economy is unbelievably strong. World consumers may very well be keeping the US economy afloat, through US exports.

I don’t see a slump in US consumption (which would be mitigated by rising US incomes,) causing a global downturn. Now maybe global growth rates might slow, although I have no idea how to quantify the reduction. But a downturn? It seems we are a very great ways from that possibility.

I admit I may be associating too much with the term “downturn”. If by “downturn” you mean “undetermined reduction in growth”, then I retract the previous objection. But if you mean “recession” or the like, then I cannot agree, at least at this time.

[donaldduckmoore]

I am not an economist and I don’t know all the economic pathways and mechanisms in the network. One thing I do believe based on my gut feeling is that since everything is so inflated, US Stocks, chinese stock market, US housing bubble, global housing condition. We are approaching to the breaking point. When? I wish I know so that I don’t have to wait to buy a damn house here.

[donaldduckmoore]

I am not an economist and I don’t know all the economic pathways and mechanisms in the network. One thing I do believe based on my gut feeling is that since everything is so inflated, US Stocks, chinese stock market, US housing bubble, global housing condition. We are approaching to the breaking point. When? I wish I know so that I don’t have to wait to buy a damn house here.

[5yearwaiter]

If FED goes to lower interest rates again making mistakes in the housing and going to disaster housing for further. I beleive the THEOREY what explained is correct, but the prevailed several guess is not letting interest rate DOWN at this moment to welcome another puzzle to resolve.

[5yearwaiter]

If FED goes to lower interest rates again making mistakes in the housing and going to disaster housing for further. I beleive the THEOREY what explained is correct, but the prevailed several guess is not letting interest rate DOWN at this moment to welcome another puzzle to resolve.

[Anonymous]

We could potentially see a disconnect between what the fed wants to see with regard to rates and what actually happens. It would be interesting if they lowered their overnight rate, but rates on mortgages stayed the same or even went up. It could happen if investors started to see the risk in mbs and demanded a higher premium for their risk.

[Anonymous]

We could potentially see a disconnect between what the fed wants to see with regard to rates and what actually happens. It would be interesting if they lowered their overnight rate, but rates on mortgages stayed the same or even went up. It could happen if investors started to see the risk in mbs and demanded a higher premium for their risk.

[SD Realtor]

“It would be interesting if they lowered their overnight rate, but rates on mortgages stayed the same or even went up. It could happen if investors started to see the risk in mbs and demanded a higher premium for their risk.”

So Andy, are you saying that you believe that investors of mbs are driving the mortgage rates?

SD Realtor

[SD Realtor]

“It would be interesting if they lowered their overnight rate, but rates on mortgages stayed the same or even went up. It could happen if investors started to see the risk in mbs and demanded a higher premium for their risk.”

So Andy, are you saying that you believe that investors of mbs are driving the mortgage rates?

SD Realtor

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