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822

Do all those ARM's blow up the economy?

Do house prices fall, lowering taxes, which fucks City/County/State budgets?

ELI5, what would a 1-2% raise in the interest rates do to US housing?

Do all those ARM's blow up the economy? Do house prices fall, lowering taxes, which fucks City/County/State budgets? ELI5, what would a 1-2% raise in the interest rates do to US housing?

(post is archived)

[–] 1 pt

The FED will never raise interest rates to 1% let alone 10%

[–] 2 pts

Yeah, at this point, the Fed is all talk. The markets are tanking right now at even the suggestion of rate hikes and tapering.

Yeah, that's the thing. We can have huge inflation but interest rates at 1%. It's highway robbery.

[–] 1 pt

It's about the imminent impending bankruptcy I think because of sent servicing. Increase in interest rate will finally bankrupt the usa

[–] 0 pt

They're fucked, though. If they don't raise interest rates inflation will consume their profits. All the outstanding debt owed them by mortgage holders, student loan borrowers, etc. is priced at rates far lower than inflation. That means you actually make money by borrowing because you're locking in the value of that money to the time when you borrowed it. The lender is losing buckets of money.

On the other hand, increasing interest rates will tank the real estate bubble and put us right back in 2008. Good luck Mr. Fed.