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If you look at a graph of interest rates that goes back more than 50 years you'll see that the recent period of very low rates is an abhoration. It was weird. I
by onion2k 3y ago
If you look at a graph of interest rates that goes back more than 50 years you'll see that the recent period of very low rates is an abhoration. It was weird. It hasn't happened before. 8% is a return to normal (still a little low if anything). Refusing to sell because you believe rates will drop is just making your life more difficult because it almost certainly won't happen.
- qeternity 3y ago> because it almost certainly won't happen. A return to zirp in the short-term most likely won't happen. But the world simply cannot afford higher rates. The Fed is pausing, in will likely cut next year.
- throwaway2037 3y agoThe Fed is pausing They are likely to raise rates (25bps) at the next meeting. Economic indicators continue to be very strong, and inflation has not meaningfully reduced.
- imtringued 3y agoIf you look at a graph of interest rates there is a centuries long trend of declining interest rates. The current interest rate hike is the "abhoration".
- sunbum 3y agoYeah but prices are still at very low interest rate levels and not at 8% interest rate level
- username332211 3y agoThere's a much bigger aberration in a graph out there though. The M2 money supply. During covid it expanded at an unprecedented rate. It's currently declining. The latter hasn't happened since the Fed started publishing records of it. Worse still, the last historical precedent for such a decline I could find is the 1929 depression.