Hey, what does this latest rate hike mean?

[peenie 1,905]

From CNN:

Quote

The Federal Reserve approved a fourth-straight rate hike of three-quarters of a percentage point on Wednesday as part of its aggressive battle to bring down the white-hot inflation that is plaguing the US economy.

The supersized hike brings the central bank’s benchmark lending rate to a new target range of 3.75% to 4%. That’s the highest the fed funds rate has been since January 2008.

Wednesday’s decision, which comes at the end of a two-day policy meeting of the Federal Open Market Committee, marks the Fed’s toughest policy move since the 1980s and will likely deepen the economic pain for millions of American businesses and households by pushing up the cost of borrowing even further.

Does this mean I can't get a home loan for less than 4%? What else does it mean?

[IGotWorms 4,057]

10 minutes ago, peenie said:

From CNN:

Does this mean I can't get a home loan for less than 4%? What else does it mean?

It means you probably can’t get a home loan for less than 7.5% because the bank gotta get theirs

Car rates up, credit card rates up.

Basically, sorrow and pain. But hopefully not so much inflation!  

[cyclone24 1,912]

46 minutes ago, IGotWorms said:

It means you probably can’t get a home loan for less than 7.5% because the bank gotta get theirs

Car rates up, credit card rates up.

Basically, sorrow and pain. But hopefully not so much inflation!  

If you’re struggling to buy a house now, or put food on your table as a Democrat, I really don’t even feel sorry for you. We all told you this would happen, but you didn’t like mean Tweets. This country is far far weaker than it was even two years ago. Trump is a complete dumbass and a buffoon, but his policies worked. So if you’re struggling on the left? Lay in that bed baby girl.
  

[Mike Honcho 5,119]

1 hour ago, peenie said:

From CNN:

Does this mean I can't get a home loan for less than 4%? What else does it mean?

Sure, it's called squatting.  

[listen2me 23 1,831]

5 minutes ago, Mike Honcho said:

Sure, it's called squatting.  

Not sure if she is looking in San Fransisco

[peenie 1,905]

I rent, I'm not homeless. 

[Horseman 2,374]

1 hour ago, peenie said:

From CNN:

Does this mean I can't get a home loan for less than 4%? What else does it mean?

4%?  You been living in a cave?

[IGotWorms 4,057]

34 minutes ago, cyclone24 said:

If you’re struggling to buy a house now, or put food on your table as a Democrat, I really don’t even feel sorry for you. We all told you this would happen, but you didn’t like mean Tweets. This country is far far weaker than it was even two years ago. Trump is a complete dumbass and a buffoon, but his policies worked. So if you’re struggling on the left? Lay in that bed baby girl.
  

Did I say I was, dumbass?

[cyclone24 1,912]

1 minute ago, IGotWorms said:

Did I say I was, dumbass?

Quoted you but wasn’t specifically referring to you.

 

[peenie 1,905]

57 minutes ago, Horseman said:

4%?  You been living in a cave?

Why do you say that? The last time I got a mortgage loan quote was 3% (credit union) and 3.2% But that was 2 years ago. 

[cmh6476 1,010]

4 minutes ago, peenie said:

Why do you say that? The last time I got a mortgage loan quote was 3% (credit union) and 3.2% But that was 2 years ago. 

It's going to be a lot higher than that now.   Probably as someone else mentioned 7.5%.

[nobody 2,569]

2 hours ago, peenie said:

From CNN:

Does this mean I can't get a home loan for less than 4%? What else does it mean?

It means the exact opposite of being able to get a hom loan for less than 4%.  

It also means any high dividend yield stocks are going to get crushed, and it means savings accounts should up their interest rates.  It also means the Fed still thinks inflation is out of control.

[peenie 1,905]

1 minute ago, nobody said:

It means the exact opposite of being able to get a hom loan for less than 4%.  

It also means any high dividend yield stocks are going to get crushed, and it means savings accounts should up their interest rates.  It also means the Fed still thinks inflation is out of control.

So, even with a high credit rating (816) and 20% down, I can't get a 4% home loan?

[nobody 2,569]

Just now, peenie said:

So, even with a high credit rating (816) and 20% down, I can't get a 4% home loan?

That would be a pipe dream.

The prime rate is now going to be 4%.  Mortgage rates will be higher than that no matter how good of a borrower someone is.  Expect 6% with the stats you listed.  5.5% if you are a good negotiator maybe.

[Shooter McGavin 618]

1 hour ago, cyclone24 said:

If you’re struggling to buy a house now, or put food on your table as a Democrat, I really don’t even feel sorry for you. We all told you this would happen, but you didn’t like mean Tweets. This country is far far weaker than it was even two years ago. Trump is a complete dumbass and a buffoon, but his policies worked. So if you’re struggling on the left? Lay in that bed baby girl.
  

What a piece of sh1t 

[Gladiators 1,964]

2 minutes ago, Shooter McGavin said:

What a piece of sh1t 

Do you forgive him?

[Hardcore troubadour 14,962]

4 minutes ago, Shooter McGavin said:

What a piece of sh1t 

Kindness 

[5-Points 3,398]

4 minutes ago, Shooter McGavin said:

What a piece of sh1t 

He's a piece if sh!t because he doesn't feel sorry for the 81 million ( ) people who created this mess? 

[TheNewGirl 1,357]

3 hours ago, peenie said:

From CNN:

Does this mean I can't get a home loan for less than 4%? What else does it mean?

It means that you have NO idea how any of this works, and you really should. 

it also means that I am not surprised that you have no idea how this works. 

 

[listen2me 23 1,831]

6 minutes ago, Gladiators said:

Do you forgive him?

 

5 minutes ago, Hardcore troubadour said:

Kindness 

Lol spot on fellas

[Mike Honcho 5,119]

52 minutes ago, peenie said:

So, even with a high credit rating (816) and 20% down, I can't get a 4% home loan?

No, because it costs the banks/mortgage companies 4% to borrow the money to give you for your loan.  Banks are in business to make a profit, so expect markup 2.5 to 4% over prime(The rate that was raised today).  By raising the interest rates, the Fed  slows the amount of borrowed money, increases saving(Banks pay you more to borrow your money) and decreasing the amount of money in the economy,  with the goal of decreasing spending.  Decreased spending = lower demand, higher supply, and if you have a high supply and want it gone, you sell it for less money.  So that's why the FED has increased interests rates.  

Opposite is true too.  If the economy slows, they will decrease interest rate making it easier to borrow money and spend on goods. 

That's the simplified version. 

[RaiderHaters Revenge 4,243]

It means you voted blue 

[peenie 1,905]

10 minutes ago, Mike Honcho said:

No, because it costs the banks mortgage companies 4% to borrow the money to give you for your loan.  Banks are in business to make a profit, so expect markup 2.5 to 4% over prime(The rate that was raised today).  By raising the interest rates, the Fed  slows the amount of borrowed money, increases saving(Banks pay you more to borrow your money) and decreasing the amount of money in the economy,  with the goal of decreasing spending.  Decreased spending = lower demand, higher supply, and if you have a high supply and want it gone, you seller it for less money.  So that's why the FED has increased interests rates.  

Opposite is true too.  If the economy slows, they will decrease interest rate making it easier to borrow money and spend on goods. 

That's the simplified version. 

Thank you for the explanation. I don't own a home and no one in my family (maternal side) has ever owned their own home. I come from poverty, so excuse me for not knowing things. 

[MLCKAA 547]

39 minutes ago, cmh6476 said:

It's going to be a lot higher than that now.   Probably as someone else mentioned 7.5%.

National average was 7.5% yesterday.  It’ll be higher.

[peenie 1,905]

22 minutes ago, TheNewGirl said:

It means that you have NO idea how any of this works, and you really should. 

it also means that I am not surprised that you have no idea how this works. 

 

That is correct, I have no idea. They didn't teach this information at my school. 

[Strike 5,221]

We need "You're a piece of sh*t" amnesty.  More amnesty. 

[Hardcore troubadour 14,962]

17 minutes ago, Mike Honcho said:

No, because it costs the banks mortgage companies 4% to borrow the money to give you for your loan.  Banks are in business to make a profit, so expect markup 2.5 to 4% over prime(The rate that was raised today).  By raising the interest rates, the Fed  slows the amount of borrowed money, increases saving(Banks pay you more to borrow your money) and decreasing the amount of money in the economy,  with the goal of decreasing spending.  Decreased spending = lower demand, higher supply, and if you have a high supply and want it gone, you seller it for less money.  So that's why the FED has increased interests rates.  

Opposite is true too.  If the economy slows, they will decrease interest rate making it easier to borrow money and spend on goods. 

That's the simplified version. 

Nice job Mike. Instead of jumping down Peenies Throat this is the way to inform her. And she’s right. It’s not her fault the schools don’t teach this. They should. 

[cyclone24 1,912]

55 minutes ago, Shooter McGavin said:

What a piece of sh1t 

Lay in that bed. We told you this would happen. I mean I have no sympathy at all. You voted for this.  

[cmh6476 1,010]

23 minutes ago, Hardcore troubadour said:

Nice job Mike. Instead of jumping down Peenies Throat this is the way to inform her. And she’s right. It’s not her fault the schools don’t teach this. They should. 

That's a good point.   Not just on a message board, but in general if you don't know something instead of people actually explaining it and not trying to make you feel dumb about it, they simply make you feel dumb about it and not want to ask questions that others probably have as well 

[cyclone24 1,912]

52 minutes ago, 5-Points said:

He's a piece if sh!t because he doesn't feel sorry for the 81 million ( ) people who created this mess? 

That’s their logic. You’re a POS because the things we all said would happen if you just flooded the economy with a bunch of money are happening and now people are struggling. If you voted for it? Go fock yourself and enjoy those high prices.

now luckily we’re just a handful of days away from keeping pudding head from doing anything else the rest of his term. 
 

 

[Horseman 2,374]

How do you get out of Jr High without understanding percentage?

You're trying to tell me there are a large number of people who don't understand what it means when they sign up for a 22% APR credit card.  They don't understand what it means every time they are handed a receipt with 10% sales tax.

GTFOH

[5-Points 3,398]

9 minutes ago, cyclone24 said:

That’s their logic. You’re a POS because the things we all said would happen if you just flooded the economy with a bunch of money are happening and now people are struggling. If you voted for it? Go fock yourself and enjoy those high prices.

now luckily we’re just a handful of days away from keeping pudding head from doing anything else the rest of his term. 
 

 

Let's hope. Don't forget how he got there in the first place. 

Here's hoping he's not just a lame duck but a dead duck for the rest of his disastrous term. 

[Shooter McGavin 618]

1 hour ago, 5-Points said:

He's a piece if sh!t because he doesn't feel sorry for the 81 million ( ) people who created this mess? 

First of all, the Biden voters didn't create this mess.  Second, taking joy in someone that cant feed their family because they voted for the other guy is really sh1tty.

[Shooter McGavin 618]

21 minutes ago, cyclone24 said:

Lay in that bed. We told you this would happen. I mean I have no sympathy at all. You voted for this.  

I didn't vote for this, and this would have happened if trump won anyway.

No sympathy for starving people if they voted for Biden.  What a classless turd

[5-Points 3,398]

3 minutes ago, Shooter McGavin said:

First of all, the Biden voters didn't create this mess.  Second, taking joy in someone that cant feed their family because they voted for the other guy is really sh1tty.

They voted for this mess. So they do bear some culpability. 

[Horseman 2,374]

6 minutes ago, Shooter McGavin said:

First of all, the Biden voters didn't create this mess.  Second, taking joy in someone that cant feed their family because they voted for the other guy is really sh1tty.

Not joy dumbass, nobody wants to be in this mess, it's telling the retards we told you so.  It's your fault- own it.  

[cmh6476 1,010]

Trump's administration was spending money off the charts as well, you guys.   Do we just give him a pass because it was during the height of a global pandemic?

[easilyscan 869]

1 hour ago, Mike Honcho said:

No, because it costs the banks/mortgage companies 4% to borrow the money to give you for your loan.

So this means that 'before' the Fed reserve started hiking rates, (and I was receiving 1/100 of one percent in my Fidelity money market) the banks were basically getting free money to loan out ? 

 

[Horseman 2,374]

Just now, cmh6476 said:

Trump's administration was spending money off the charts as well, you guys.   Do we just give him a pass because it was during the height of a global pandemic?

How many times do we have to go over this?

The first spending bill (under Trump) was bipartisan, almost unanimously.  The second bill (under Biden) was the exact opposite and the Republicans warned it would send us to a recession.  

[cmh6476 1,010]

4 minutes ago, Horseman said:

How many times do we have to go over this?

The first spending bill (under Trump) was bipartisan, almost unanimously.  The second bill (under Biden) was the exact opposite and the Republicans warned it would send us to a recession.  

Quit cherry picking.   The stimulus payments.   Advances in chid tax credits.   PPP loans.   Coronavirus food programs.   ARPA.  I mean we can debate what was warranted or not all day long.   But all of these things have led us to the environment we all are currently in right now.