Economics

399 readers

118 users here now

founded 1 year ago

Fed's Powell says 'time has come' to begin cutting interest rates (finance.yahoo.com)

submitted 3 weeks ago by [email protected] to c/[email protected]

6 comments fedilink hide all child comments

Federal Reserve Chair Jerome Powell sent a straightforward message to markets in a key speech on Friday, saying "the time has come" for the central bank to begin lowering interest rates.

you are viewing a single comment's thread
view the rest of the comments

[–] [email protected] 1 points 3 weeks ago (1 children)

YAY my next house will have a good interest rate.

Boo this will cause more rapid inflation

[–] [email protected] 6 points 3 weeks ago (1 children)

Yeah next house will have a better rate and be 50% more expensive

[–] [email protected] 3 points 3 weeks ago (2 children)

I'm just hoping I can refinance. Still kicking myself for not redoing my mortgage when rates were under 3% a few years ago.

[–] [email protected] 3 points 3 weeks ago

Just run the numbers before you do. It restarts the amortization schedule, which depending on how long you've had it and what the fees will be could mean it's significantly worse to refinance.

People think 5% is just a flat 5% a year, when it's all front loaded. So it's might be more like 5% interest the first year, but then by year 10 you've already paid almost half of all the interest you will pay.

Add on the extra fees, and it might be better to just keep the existing mortgage.

Just be sure to run the numbers first is all.

[–] [email protected] 2 points 3 weeks ago

Yes, that was a very expensive mistake.