I would like to review the market conditions and why the Federal Reserve kept the interest rate so low for months. The Fed was holding as the first quarter of 2022. The central bank has raised the Fed fund 12 times and the current Federal Funds Rate is 5.50%.

The Fed raises interest rates when the economy starts overheating and cuts rates when the economy weakens.

The mortgage giant does not expect rates to drop below 6.50% until the fourth quarter of 2024. The historical Prime Rate is 3.50% effective as of 3/17/2022 and the Current Prime Rate is updated. 8.50% effective as of August 27, 2023. The US Prime rate has been used by large banks to loan money to their creditworthy clients. Traditionally, the rate is set to approximately 3.00% over the federal funds rate.

Most people on Wall Street criticize the fed policy for this matter. Unemployment is very low and manufacturing productivity is at a normal level. Gas prices fluctuate. Still, there is a shortage of car inventory, and the dealership does not offer a rebate.

This is the first time in history that the interest rate is at the highest level and facing multiple offers for each house to buy. The insurance premium is almost doubled, and fewer insurance companies are willing to bind any new policy.

The national debt exceeds 32 trillion. But the dollar is very strong in comparison with other currencies. We are facing an entertainment strike including (11500 screenwriters) and Lober disputes with the alliance of Motion Picture and Television Producers. The union is asking for fair compensation and protection for writers.

 Do you think it is still a good time to buy a house? Or home prices may decline in the near future. Some economists predict the interest rate will be kept at this level until the year 2025. What do think about this matter? You can join us for weekly meetings at the clubhouse every week starting at 9.00 pm.

You can also listen to Shawn Rabban’s 670 AM RADIO KIRN show.

Shawn Rabban | 310 -714 -5616 | Shawnrabban@yahoo.com |

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