tvguy
Question anything the facts don't support.
- Joined
- Dec 15, 2003
My wife and I often wonder how our parents juggled finances, because they paid cash for their houses. Of course my parents first house was really a one bedroom shack that cost a few months pay and they added on to it over 10 years until it was a 3 bedroom 2 bath home. They did all the labor.You can always do an ARM and refinance if you think it will drop, although historically (prior to 2008 market manipulations) really around 7% is where it probably should be. I wouldn't expect much higher interest rates to be sustainable. If I was in your position I'd think I was in a good spot and would take fixed, if it dips a bunch I'd plan to refi in a few years.
I was researching recently and there are very few high risk loans being written (in contrast to 2005-8) so there is nothing I see to justify the push of rates upwards so today couldn't be less like prior market behaviors. Rates are going up because there really did need to be a market correction up from 0% interest, although what this has to do with inflation is bewildering. Seems the Fed is getting the hotfoot to manage "inflation" which naturally happens due to too much money supply but right now all the price jumps are more likely price fixing (evidenced by growing profits which actually shrink with inflation - so opposites day) even though Fed can't affect price fixing, but what the hay- let's see what happens.
This all strikes me as a strange hack, we are all hyper aware that this happens with computers and social media so I have no idea why people would be shocked it could easily happen with our markets, open as they are (although they are supposed to be monitored but not my circus and not my monkeys). All it takes is the key variables for inflation to be tapped to make things look a particular way and this can send people into tailspins which is very disturbing to me. Natural inflation severely slices into profits which trigger the layoffs of recession, but since there are no losses in profits best guess is cyclic employment will be the new prop to point at. If there is a dip after the holidays I suspect it will be in retail which is controlled by non US interests but not a real recession. Truly I'm just mystified at the spin & think we all need to just chill.
My FIL was career Air Force and lived on base for 27 years so he had decades to save money for his first house.