It's a big old goofy world indeed
Go figure. Four straight $10 billion dollar cuts. Monthly stimulus designed to lower interest rates slashed from $85 billion dollars each month to $45 billion dollars. The program designed to keep interest rates artificially low to spur the economy to new heights. The program is scheduled to end completely this year but so far interest rates do not see the need to go anywhere but the opposite direction that one would expect.
No doubt when the stimulus began interest rates went down to all time historic lows and stayed down at funny money rates. Luckily for borrowers we still enjoy those funny money rates. Last year when the Fed "warned" that cuts in the program were possible, rates jumped a full point but now that the cuts are here rates continue to drop. In fact they are down about 10% from the first of the year when the first cuts came. And with each cut so far further drops in interest rates. This morning the average overnight rate on a conforming 30 year fixed note are down to 4.13%. The lowest level we have enjoyed since May 16th of last year. Go figure. Who knows how long the funny money will be here to enjoy. Always interesting, always fun.
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