The authoritarian lockdowns delayed inflation from hitting as it crushed employment, consumer demand for certain services and products as the lockdowns prevented travel, lack of tourism also reduced demand and also depressed consumer spending in general.
Today we have high consumer demand at the same time the supply chains are fucked and all the government spending has caused inflation.
All of the chickens are coming home to roost
I am not an economist either so this is the best way I can explain our current economic shitstorm in layman's terms.
The Fed has held off inflation for 25 years, so they are using the pandemic as a excuse to let inflation run "hot", their words not mine. Consumer demand is down, it's literally tanking because gas prices and as a consequence, food prices have skyrocketed. Also the fact that everyone was stuck home for two years, so they spent their free cash on consumer goods and home improvement, but that has pretty much dried up now that people are out of the house and it's summer. Mortgages are now close to 7%, so not only can you over pay for a home, you can get raked over the coals by little hats interests too. That means expect another housing bubble crash from all the idiots that got adjustable rate mortgages thinking it would stay at 2% forever.
When should we expect mortgage rates to go back down, or rather what conditions should I be on the lookout for that would result in them going back down at some point in the future?
When should we expect mortgage rates to go back down, or rather what conditions should I be on the lookout for that would result in them going back down at some point in the future?
When people start losing their houses because they can't afford interest, prices will begin to fall.
The authoritarian lockdowns delayed inflation from hitting as it crushed employment, consumer demand for certain services and products as the lockdowns prevented travel, lack of tourism also reduced demand and also depressed consumer spending in general.
Today we have high consumer demand at the same time the supply chains are fucked and all the government spending has caused inflation.
All of the chickens are coming home to roost
I am not an economist either so this is the best way I can explain our current economic shitstorm in layman's terms.
The Fed has held off inflation for 25 years, so they are using the pandemic as a excuse to let inflation run "hot", their words not mine. Consumer demand is down, it's literally tanking because gas prices and as a consequence, food prices have skyrocketed. Also the fact that everyone was stuck home for two years, so they spent their free cash on consumer goods and home improvement, but that has pretty much dried up now that people are out of the house and it's summer. Mortgages are now close to 7%, so not only can you over pay for a home, you can get raked over the coals by little hats interests too. That means expect another housing bubble crash from all the idiots that got adjustable rate mortgages thinking it would stay at 2% forever.
When should we expect mortgage rates to go back down, or rather what conditions should I be on the lookout for that would result in them going back down at some point in the future?
When people start losing their houses because they can't afford interest, prices will begin to fall.