The current situation in unprecedented.
Without manipulation by the Federal Reserve, mortgage interest rates should almost never be below inflation for new loans, and if they ever are, they should quickly correct to be at least a bit above inflation.
The actions of the Federal Reserve are keeping interest rates from rising as quickly as they naturally would, and in so doing, they may be making the inflation worse. Its anyone’s guess if the Fed will hold the line through this “transitory” inflation, or is forced to let rates rise.
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