Federal Reserve raises US interest rates to 5.5% highest level in 22 years

ft.com

17 points·wslh··9 comments

and if you zoom out, it's still surprisingly low compared to other periods with inflation. Either Powell did a good job squashing inflation (and a few more quarters will prove it), or he's missed the mark and it's still going to be persistently above 2% for a very long time.

I'll start to throw around some hyperbole if we get above 8% fed funds rate

See this chart: https://www.macrotrends.net/assets/images/large/fed-funds-ra...

(note the chart is not current, so make sure you extrapolate the line up to 5.5%)

https://archive.is/SUAx6

Not high enough fast enough, if the current policy is to be trusted.

What is the expected impact for trying to buy a home?

Eventually, it should put downward pressure on house prices. Who knows on what timeline.

Current homeowners don't want to give up their current low rates, which would happen if they sold. Less inventory.

It's probably the worst time in history to be a buyer(so far...).

Shiller (of the Case-Shiller real estate price index), came out recently and stated he expects the buy side to slow down once the Fed signals they're done raising rates. He typified buyers as willing to pay increased prices now because they don't want to buy at higher rates. I think I saw it yesterday...

current home owners who sell, end up buying another home most of the time. there isn't any significantly less inventory. housing shortage comes from more.people wanting to buy homes, and new inventory lagging the increase in want to be buyers

For people with a ton of money, sure it doesn't matter. But most people buy nicer and newer houses throughout life, freeing up smaller and older houses for the next generation. When that quits happening, everything gets kinda logjammed.

We want more.

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