Fed hikes rates to highest since dot-com bubble. The central bank’s key overnight rate will rise to a range of 5.25% to 5.5%. That is higher than it has been in decades.
(www.washingtonexaminer.com)
🤑 MONEY COLLAPSE 💥
It's the only button they have. The claim is that raising interest rates will slow down the bonfire of an economy that they have created by typing too many zeros into their computers. It's a bit like making a bucket chain to do put out a raging fire though.
Oh and it will push many homeowners over the edge - the ones who went all out and now find themselves in hot water i.e. repayments too high.
Also, it will lower real estate prices, because there will be less demand due to the higher interest rates, which is attractive to Blackrock, who will buy up all the (cheap) properties whose previous owners find themselves upside down (i.e. there is no longer an upside, and the previous owners walk away).
How would a homeowner with a mortgage have higher payments unless they signed up for a flexible rate? Who, in their right mind, would do that?
I don't know about in US, but I've heard variable rates are extremely common in UK and other parts of the world. Most don't use the 30yr fixed that we do
New Zealand's central bank is at the forefront of this interest rate fiddling game - since the early nineties. I'd say that many WEF policies are trialed here. Each of the leaders of parties is a WEF graduate, BTW.
Most banks devolve to a flexible rate if the homeowner doesn't fix it. It takes a bit of paperwork and phone-calling to do so. Many people ignore that they should fix the rate, because they are too busy in their day-to-day life.
We fixed ours, but my son (builder) didn't and he suffered a massive hike - at first he was round our place every night for dinner (and a beer) as a result. We did warn him, but who listens to boomer parents? NVM. He is hanging in there by working cash-jobs on Saturdays now.
This is in New Zealand? The type of rate is made very clear at closing, by law, and after 08, I can't imagine signing up for flexible. Here, if you have a flexible rate, you would have to refinance with a fixed rate.
In New Zealand one signs up for a fixed rate for 1, 2, 5 or even 10 years. Then it devolves back to flexible unless fixed again.
The problem is that the rates are different, so the 10 yr fix is far more expensive than say, the 1 yr rate. Sometimes the flexi-rate falls below those fixed rates as well. So, it is a crap shoot to pick for how long to fix the rate for, and the perception is that one pays for the luxury of fixing.
We guessed 5 yrs for a rate that was more expensive than the flexi-rate. Six months later, the flexi-rate shot above that rate - so we guessed right. We read the tealeaves correctly, I guess.
On the other hand, my son went with the cheapest rate available at the time, which was the flexi-rate, and got screwed.
Put my newlywed nephew on the list. I warned him a couple months ago. He told me their banker said there was a good chance the rates could go down. 😒
I told him flat out, they can only go up and you better lock in to a fixed rate ASAP.
USA is famous for its 30 year fixes. Doesnt happen in other countries. Where I am you can get 10 year fix max but expect massive arrangement fee. Most people on variable rate.
I was advised to get a 30 year fixed, which I got on a jumbo at 3.5%. I am fortunate enuf that I could pay it off, but I make much more than the 3.5% leaving it invested. Add to that inflation and over the 30 years you beat the bank.
Millions of people in UK now facing 7% on mortgages which were 2% when they started them only a few years ago. May not sound a lot in percentage terms but means monthly payments doubled or tripled. Not sure what a jumbo is but I know a lot of people would kill for a 30 year fix at 3.5% 😀
Nobody with a head on their shoulders.
Zelensky MUST FEED!
This is the button you push to kill the offshore dollar market that's been funding the Globalist cabal. Yes we'll hurt, but well..it had to be this way because of what Bernanke and Yellen did.