Powell is keeping rates too high and keeping SFR sales low

[Zoe]

Fire Jerome Powell he doesn't have a clue and wants to destroy the winning Trumps giving America.

I didn't realize you were so shallow on economics.

Do you dye your hair blonde?

 

[alebrewer]

Comparing US mortgage rates to European mortgage rates makes for a good headline, but most certainly is not apples to apples. The US made the determination that everyone deserves to own a home and, as such, subsidizes home ownership. Not so in Europe. In Germany, LTV is almost never above 80%, and is most often less. Of course rates are going to be lower when the risk of default is lower.

 

[Zoe]

Comparing US mortgage rates to European mortgage rates makes for a good headline, but most certainly is not apples to apples. The US made the determination that everyone deserves to own a home and, as such, subsidizes home ownership. Not so in Europe. In Germany, LTV is almost never above 80%, and is most often less. Of course rates are going to be lower when the risk of default is lower.

See, I ddin't realize that. Thanks for sharing.

 

[Zoe]

We are not in deflation mode and national debt is rising. The Federal Reserve Bank has little reason to lower fed funds borrowing rate.

Housing market is weak but not real weak and national borrowing debt is really high. Money is flowing.

When Federal Reserve bank raises fed funds borrowing rate to banks, it shrinks the money supply. Money supply is doing well at moment and inflation as well.

 

[Zoe]

Inflation still a little high. That is like handcuffs on Federal Reserve Bank.