Feds to up Interest Rates

[Techun]

unavailable..... and no - no need to tie up credit that long.. Pay a depreciating asset off as quick as possible.

Again, the length of the loan doesn't necessarily have anything to do with how long you keep the loan.

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[Natethegreat1979]

I wish my pay went up as easily as they raise rates!

When the rates finally do drop, how many folks think prices will go back to "normal" ?.... corporations have gotten FAT off the people, they'll drop the prices a little too make folks think they're playing ball, but ONLY a little. We all will STILL be paying a ridiculous amount for groceries, gas, homes and the like...

 

[KompressorV12]

When the rates finally do drop, how many folks think prices will go back to "normal" ?.... corporations have gotten FAT off the people, they'll drop the prices a little too make folks think they're playing ball, but ONLY a little. We all will STILL be paying a ridiculous amount for groceries, gas, homes and the like...

Highly doubt prices will ever go back down. I'm well aware that some people never received substantial raises, but a lot of people did. In fact, there's a monthly report on wage growth. Prices won't go down they'll just stabilize.

 

[Overcooked]

My understanding is that Fed will keep increasing rates until a lot of people can't afford to get new toys, like Broncos, and that's because they want to deal with inflation. Everyone's financial situation is different, but If you are doing well above avg, then a Bronco will be easily attainable soon, probably at a discount, begged by numerous dealers, otherwise you will have bigger problem to solve then getting a Bronco.
I already had 4 dealers reached out to me and wanted to sell me a Bronco because a customer abandoned the order, I didn't bother to ask for price because I already bought a BMW and has no garage space for a Bronco now. But things definitely has began to change.

 

[KompressorV12]

My understanding is that Fed will keep increasing rates until a lot of people can't afford to get new toys, like Broncos, and that's because they want to deal with inflation. Everyone's financial situation is different, but If you are doing well above avg, then a Bronco will be easily attainable soon, probably at a discount, begged by numerous dealers, otherwise you will have bigger problem to solve then getting a Bronco.
I already had 4 dealers reached out to me and wanted to sell me a Bronco because a customer abandoned the order, I didn't bother to ask for price because I already bought a BMW and has no garage space for a Bronco now. But things definitely has began to change.

Most people think of making things more expensive as a way to get people to stop spending, except that hasn't stopped anything (see the economy continuing to hire and the fed continuing to raise rates). But most people DON'T think of the savings aspect. My local credit union is offering 4% APY on their basic savings account, no minimums, not withdrawal limits, a standard savings account. The increased prices sucks but haven't really changed my spending (see my signature lol), but when I started seeing 3 digit interest payments in my bank account each month it made me seriously consider pausing spending. I'm essentially being handed a used car payment in free money each month by NOT spending. I feel like one of those severely injured or rich people they talk about in the daytime commercials with "structured annuities" haha. It's crazy.

 

[broncoj11]

Most people think of making things more expensive as a way to get people to stop spending, except that hasn't stopped anything (see the economy continuing to hire and the fed continuing to raise rates). But most people DON'T think of the savings aspect. My local credit union is offering 4% APY on their basic savings account, no minimums, not withdrawal limits, a standard savings account. The increased prices sucks but haven't really changed my spending (see my signature lol), but when I started seeing 3 digit interest payments in my bank account each month it made me seriously consider pausing spending. I'm essentially being handed a used car payment in free money each month by NOT spending. I feel like one of those severely injured or rich people they talk about in the daytime commercials with "structured annuities" haha. It's crazy.

Uhhh pm me your credit union lol

 

[Jeffp1108]

According to the Bureau of Labor Statistics, median weekly earnings have increased ~9% from Q1 2021 to Q4 2022, so if you are getting "poorer", it's time to get a new job.

I’m a teacher. My pay sure as hell hasn’t increased anywhere near 9%since 2021.

I’ll have to check on that stat.

 

[Overcooked]

Most people think of making things more expensive as a way to get people to stop spending, except that hasn't stopped anything (see the economy continuing to hire and the fed continuing to raise rates). But most people DON'T think of the savings aspect. My local credit union is offering 4% APY on their basic savings account, no minimums, not withdrawal limits, a standard savings account. The increased prices sucks but haven't really changed my spending (see my signature lol), but when I started seeing 3 digit interest payments in my bank account each month it made me seriously consider pausing spending. I'm essentially being handed a used car payment in free money each month by NOT spending. I feel like one of those severely injured or rich people they talk about in the daytime commercials with "structured annuities" haha. It's crazy.

Well if things are expensive enough people will stop spending. We are not there yet haha.
Just look at the housing market, the bidding war stopped overnight once interest gets higher and housing prices are dropping like a rock. My house valued 2.8M last year now only worth about 2.1M, and nobody is bidding anymore. Houses in desirable neighborhoods are sitting as well.
Cars are much less expensive and might take a while for the same thing to hit.
I get that savings accounts interest rate is higher as well, as expected, but the problem is majority of people don't have much money to save anyway, all they good at is borrowing money from tomorrow, and once borrowing gets expensive enough, they will have to stop.

 

[KompressorV12]

Well if things are expensive enough people will stop spending. We are not there yet haha.
Just look at the housing market, the bidding war stopped overnight once interest gets higher and housing prices are dropping like a rock. My house valued 2.8M last year now only worth about 2.1M, and nobody is bidding anymore. Houses in desirable neighborhoods are sitting as well.
Cars are much less expensive and might take a while for the same thing to hit.
I get that savings accounts interest rate is higher as well, as expected, but the problem is majority of people don't have much money to save anyway, all they good at is borrowing money from tomorrow, and once borrowing gets expensive enough, they will have to stop.

Housing is completely different. Prices skyrocketed and just 1% change could mean hundreds of dollars more a month. The difference between a 3 and 6% rate on a $50k vehicle is like $80 a month. That’s not going to change habits with vehicles.

 

[markpilip]

Here come all the financial advisors

And of course ALL of them have their Charter (CFA)!

 

[markpilip]

Costco offers a really nice double pack of heavy duty tin foil.

Enough to make bigly hats--the best--for yourself and everybody down at the legion, too. People are saying something big is brewing. And those are the best people.



....I kid, I kid.


....There's only enough for ONE really good tinfoil hat in that double pack. You have to make it extra thick!

 

[markpilip]

Just because it's an 84mo loan, doesn't mean you have to pay less each month than with a 48mo loan.

I know people who were 15 years into a mortgage who didn't want to refinance 3% lower because they didn't want to do a 30 year mortgage. Idiots!

Yup! With any luck, I'll croak with about 27 years left on a 30 year fixed. Of course I can't refi lower right now, but that day will come.

 

[Grumpy]

When the rates finally do drop, how many folks think prices will go back to "normal" ?.... corporations have gotten FAT off the people, they'll drop the prices a little too make folks think they're playing ball, but ONLY a little. We all will STILL be paying a ridiculous amount for groceries, gas, homes and the like...

How true this is.

 

[VoltageDrop]

It is a shame that the majority of people are not educated in finance and economics...

Says the guy who wouldn't take a 7 year loan at 1%

Uhhh pm me your credit union lol

Citi Accelerate savings account is at 3.85%

 

[760 bronco]

Someone with a house worth over 2 million dollars, bragging about it and telling people that live paycheck to paycheck, that borrowing money for the necessities of life like a car and a house is bad thing.
Not everyone is as lucky as you are, obviously you’ve gotten too out of touch with reality to realize that.
Hilarious

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