The Markets Do What Politicians Don't. They Work.
Back in December we talked of the unintended consequences of Presidential candidate plans to fiddle with the housing market with foolish interest rate mandates.
If the powers that be would just sit tight and allow the markets to work, would some of this take care of itself? Would the markets accomplish what their fiddling is attempting to accomplish? Reduced demand and falling prices would translate into a free market response that would end up with..................lower rates. And, wouldn't that also help other home owners who would be given an opportunity to refinance at lower rates? What are central planners trying to do? Impact that same outcome.
Today, we see that mortgage interest rates are at their lowest level in four years. The market worked fine without the unintended consequences and meddling of politicians. What mortgage rate resets? The two year note is less than 2%. I've never written on here about mortgage rate resets that are the premise of so many bearish positions. That is because we have always talked of deflation. And while the Presidential candidates were yapping about what they were going to do some time before the end of humankind, the markets solved the problem of interest rates on its own. Quite quickly in fact. Next, I expect to hear from said politicos that the market adjusted because it was afraid of the consequences should they be elected.
If the powers that be would just sit tight and allow the markets to work, would some of this take care of itself? Would the markets accomplish what their fiddling is attempting to accomplish? Reduced demand and falling prices would translate into a free market response that would end up with..................lower rates. And, wouldn't that also help other home owners who would be given an opportunity to refinance at lower rates? What are central planners trying to do? Impact that same outcome.
Today, we see that mortgage interest rates are at their lowest level in four years. The market worked fine without the unintended consequences and meddling of politicians. What mortgage rate resets? The two year note is less than 2%. I've never written on here about mortgage rate resets that are the premise of so many bearish positions. That is because we have always talked of deflation. And while the Presidential candidates were yapping about what they were going to do some time before the end of humankind, the markets solved the problem of interest rates on its own. Quite quickly in fact. Next, I expect to hear from said politicos that the market adjusted because it was afraid of the consequences should they be elected.
<< Home