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It looks as though the Fed decided to play the cards they were dealt. For now, no announced raise in rates.
This is mainly due to inflation running at less than 2%. Just in case you didn’t know, it’s at about 1.2%. Not so hot. (Cool Economy)
I’m a little confused (I know, that’s normal). We are told the economy is doing well, unemployment is down and jobs are increasing. So, why then is the inflation rate running so low? Could it be things ain’t so good after all? Are we better off today than we were 8 years ago?
For those of us in mortgage lending, things ain’t so bad. But, is that because rates are being kept low due to a poor economy? If so, then we’re sure to get hit sooner or later. Low rates alone cannot sustain a housing recovery.
A robust housing market is dependent on a vibrant economy, and a vibrant economy depends on a robust housing market. Both need a good job market with the opportunity for modest wage growth to survive. Something’s missing.
The candidates talk around these subjects. It’s time for someone to step up and do something about jobs, and income opportunities, in America. We can’t survive by keeping interest rates low forever.
In 2008, we voted for hope and change. In 2012 we still had hope. Maybe it’s time for a change.
