Fed approves fourth 0.75 rate rise, stocks fall, democrats still in denial!

[oldtimer28]

Sad to see?

Are u.s citizens talking about this? How far do you think it will go?

[Nanners]

it blows my mind that property is still so wildly overpriced in my area considering the interest rate on 30 year mortgages is almost up to 8% right now

[Off the Court]

In denial of what exactly?

It will go until inflation is under control.

[Patrick Chewing]

Dems doing everything they can to lose elections.

[HoopsNY]

it blows my mind that property is still so wildly overpriced in my area considering the interest rate on 30 year mortgages is almost up to 8% right now

This likely won't change, because there is a housing shortage. What's scary to think is what will happen when people lose their jobs and can't afford a mortgage OR a rental.

[Long Duck Dong]

This likely won't change, because there is a housing shortage. What's scary to think is what will happen when people lose their jobs and can't afford a mortgage OR a rental.

I've raised my rent $1000 over the last 2 years. I feel a little guilty since they needed very little help during Covid despite the wife being out of work for a long time. Don't hate the player, hate the game...

[Doomsday Dallas]

https://c.tenor.com/3jwvrc9B00YAAAAC/nancy-pelosi-joe-biden.gif

[SATAN]

I've raised my rent $1000 over the last 2 years. I feel a little guilty since they needed very little help during Covid despite the wife being out of work for a long time. Don't hate the player, hate the game...

The game...As in...Capitalism? :eek:

[n00bie]

it blows my mind that property is still so wildly overpriced in my area considering the interest rate on 30 year mortgages is almost up to 8% right now

Not sure about your area, but here in Toronto, rents has gone up a lot more than mortgage payments did.

[oldtimer28]

[img]https://c.tenor.com/3jwvrc9B00YAAAAC/nancy-pelosi-joe-biden.gif



Ha - evil witch.

[oldtimer28]

This likely won't change, because there is a housing shortage. What's scary to think is what will happen when people lose their jobs and can't afford a mortgage OR a rental.

Yes, it seems the biggest issue will be cost of living - for owners or renters.

Real wages decrease (unemployment or inflation) would be horrific!

[Patrick Chewing]

We should all move in with Off the Court. Just show up at his house one day and take over and never leave.

[Long Duck Dong]

Not sure about your area, but here in Toronto, rents has gone up a lot more than mortgage payments did.

I wonder how much Airbnbs are affecting rental rates in metro/tourist area areas. My rental home is in a tourist area and the amount of Airbnbs now in my neighborhood is crazy. My neighborhood is the only one in our district to allow Airbnbs. All the others effectively ban them. But as a result the prices of the homes in my neighborhood equal or exceed those of adjacent neighborhoods despite those homes being nicer. My buddy's father in law who lives next to my rental reminds me everytime he sees me that I live in the "ghetto" because we allow Airbnbs and parking on the street at night :lol I'd say a good 15% minimum of the houses in my neighborhood are now short term rentals.

So Airbnbs have to have an effect on the supply of available long term rentals in metro areas bringing rental rates even higher. If I wasn't so busy I'd probably go Airbnb myself. I should be able to make as much in 5-6 weeks during tourist season than I charge my renters in 12 months

[n00bie]

I wonder how much Airbnbs are affecting rental rates in metro/tourist area areas. My rental home is in a tourist area and the amount of Airbnbs now in my neighborhood is crazy. My neighborhood is the only one in our district to allow Airbnbs. All the others effectively ban them. But as a result the prices of the homes in my neighborhood equal or exceed those of adjacent neighborhoods despite those homes being nicer. My buddy's father in law who lives next to my rental reminds me everytime he sees me that I live in the "ghetto" because we allow Airbnbs and parking on the street at night :lol I'd say a good 15% minimum of the houses in my neighborhood are now short term rentals.

So Airbnbs have to have an effect on the supply of available long term rentals in metro areas bringing rental rates even higher. If I wasn't so busy I'd probably go Airbnb myself. I should be able to make as much in 5-6 weeks during tourist season than I charge my renters in 12 months

I think the era of drastically raising interest rates to combat inflation is over.

It's actually having the opposite effect. Highest increase in core inflation is from rent, food & gas prices.

Rent has gone up almost 30% because house prices are tanking, nobody's buying.. so everyone is renting. Landlords are also raising their prices to make up for their mortgage payments.

Raising interest rates aren't going to lower the demand for groceries. We all gotta eat. Gas prices raising are being caused by OPEC and Russia because they are cutting supply due to the recession coming.. brought on by high interest rates.

All it's doing is stopping people from buying luxury goods like expensive cars and watches.. but most people stopped buying those months ago, yet inflation is still going up.

[Off the Court]

I think the era of drastically raising interest rates to combat inflation is over.

It's actually having the opposite effect. Highest increase in core inflation is from rent, food & gas prices.

Rent has gone up almost 30% because house prices are tanking, nobody's buying.. so everyone is renting. Landlords are also raising their prices to make up for their mortgage payments.

Raising interest rates aren't going to lower the demand for groceries. We all gotta eat. Gas prices raising are being caused by OPEC and Russia because they are cutting supply due to the recession coming.. brought on by high interest rates.

All it's doing is stopping people from buying luxury goods like expensive cars and watches.. but most people stopped buying those months ago, yet inflation is still going up.
This is all pretty much false. Rent prices are lowering, granted not much but they are lowering. And inflation has decreased for 4 straight months now. The Fed is seeing results but the results are just not happening as quickly as they had hoped.

The parts of inflation that interest rates can not combat are things affected by supply chain issues, or the Russian-Ukraine war. There is nothing the Fed can do to alleviate certain items that are in low supply for reasons out of their control.

If you listened to Powell's speech yesterday, it is clear that they are not done with interest rate hikes. He reiterated that repeatedly. He believes they are seeing results, he just wishes those results were coming on faster.

[Patrick Chewing]

Rent prices are lowering, granted not much but they are lowering.

Dude, where?? I mean...where?? :oldlol:

[HoopsNY]

Dude, where?? I mean...where?? :oldlol:

Places that don't offer anything and where people don't want to live. But where there's any actual ecosystem and jobs, rents are stable and or going up.

The outlook is worrying. 60% of Americans live paycheck to paycheck as is. With another year of this, you can almost guarantee the S&P drops another 100 points and the Dow maybe another 6,000 points.

Unemployment trending upwards will be devastating for Americans because this would likely continue for another 2-3 years. Homelessness has to triple or quadruple.

[Off the Court]

Dude, where?? I mean...where?? :oldlol:

Where you supposedly live.

NYC Rent Prices Are Finally Going Down After a Year of Major Increases (https://www.thrillist.com/news/new-york/nyc-rents-are-going-down-after-huge-increases)

NYC rent prices are finally going down! (https://www.timeout.com/newyork/news/nyc-rent-prices-are-finally-going-down-102822)

and everywhere else

Rents creep down across the country (https://www.nytimes.com/2022/11/03/realestate/rent-decreases-us-cities.html)

[Patrick Chewing]

Where you supposedly live.

NYC Rent Prices Are Finally Going Down After a Year of Major Increases (https://www.thrillist.com/news/new-york/nyc-rents-are-going-down-after-huge-increases)

NYC rent prices are finally going down! (https://www.timeout.com/newyork/news/nyc-rent-prices-are-finally-going-down-102822)

and everywhere else

Rents creep down across the country (https://www.nytimes.com/2022/11/03/realestate/rent-decreases-us-cities.html)

They're going down after a year of major increases as the article states. This isn't a win. :lol

It's the same argument as gas. Gas goes up to $5 a gallon one day, and then a month later it goes down to $4 and you're out there celebrating telling everyone that gas is going down when it's still $2 higher than the years prior. It's weird how you do that all the time in the hopes of fooling people. There has to be a term for something like that. Like Fake News or False Advertising.

[Off the Court]

I didn't call it a win, it was in response to noobie's suggestion interest rates are doing the opposite and rents are continuing to go up. Which isn't true. Both inflation and rent prices are going down. Again, it is a slow creep, but it is working.

I know it's hard but keep up.

[BigKobeFan]

They're going down after a year of major increases as the article states. This isn't a win. :lol

It's the same argument as gas. Gas goes up to $5 a gallon one day, and then a month later it goes down to $4 and you're out there celebrating telling everyone that gas is going down when it's still $2 higher than the years prior. It's weird how you do that all the time in the hopes of fooling people. There has to be a term for something like that. Like Fake News or False Advertising.

That is the liberal logic. Gas went up $0.75 in 3 days. Then when it goes down for 14 consecutive days at 0.01 cents a gallon, they say gas is coming down.

[bladefd]

If you listened to Powell's speech yesterday, it is clear that they are not done with interest rate hikes. He reiterated that repeatedly. He believes they are seeing results, he just wishes those results were coming on faster.

I have a feeling that they might be done with 0.75 rate hikes and might do 0.5 from here onwards. Depending on the jobs report tomorrow and next month ofc & the next inflation report.

[bladefd]

Places that don't offer anything and where people don't want to live. But where there's any actual ecosystem and jobs, rents are stable and or going up.

The outlook is worrying. 60% of Americans live paycheck to paycheck as is. With another year of this, you can almost guarantee the S&P drops another 100 points and the Dow maybe another 6,000 points.

Unemployment trending upwards will be devastating for Americans because this would likely continue for another 2-3 years. Homelessness has to triple or quadruple.

I used to be distraught by the people living paycheck to paycheck. However, when I looked into it further, talked to some people and thought about it, I realized that a lot of those people (not all, but a big chunk of them) are living beyond their means and often don't have basic financial knowledge, which they learn the hard way after driving themselves into deep debt. Some of it is education, some cultural, and some unnecessary comfort/materialism/spoiling.

There's absolutely no reason for individuals making 100k+ to be living paycheck to paycheck. Even if they are a couple. However, that happens more often than you realize. People need to be smarter with their money and live within their means.

[bladefd]

They're going down after a year of major increases as the article states. This isn't a win. :lol

It's the same argument as gas. Gas goes up to $5 a gallon one day, and then a month later it goes down to $4 and you're out there celebrating telling everyone that gas is going down when it's still $2 higher than the years prior. It's weird how you do that all the time in the hopes of fooling people. There has to be a term for something like that. Like Fake News or False Advertising.

The trajectory is still down. You look at the pattern, which is crucial. There is hope that the downhill trend will continue. As we know, the financial market is fluid and events can shift circumstances at the drop of a dime. Trends are what market makers, bankers, and others use to influence prices/rates. Interest rates themselves are based on these trends and so is inflation.

[Off the Court]

https://www.zillow.com/rental-manager/market-trends/

Here are the top-10 rental markets in the US. All of them are trending down except for Chicago. Phoenix has done the best and actually has lower rent vs 1 year ago.

I never realized how crazy the cost of living in Miami is, more than NYC or LA.

[oldtimer28]

Places that don't offer anything and where people don't want to live. But where there's any actual ecosystem and jobs, rents are stable and or going up.

The outlook is worrying. 60% of Americans live paycheck to paycheck as is. With another year of this, you can almost guarantee the S&P drops another 100 points and the Dow maybe another 6,000 points.

Unemployment trending upwards will be devastating for Americans because this would likely continue for another 2-3 years. Homelessness has to triple or quadruple.

Yes, just think of credit card debt and defaults...

[SATAN]

LongDuckDong avoiding my question. Yikes.

[HoopsNY]

I used to be distraught by the people living paycheck to paycheck. However, when I looked into it further, talked to some people and thought about it, I realized that a lot of those people (not all, but a big chunk of them) are living beyond their means and often don't have basic financial knowledge, which they learn the hard way after driving themselves into deep debt. Some of it is education, some cultural, and some unnecessary comfort/materialism/spoiling.

There's absolutely no reason for individuals making 100k+ to be living paycheck to paycheck. Even if they are a couple. However, that happens more often than you realize. People need to be smarter with their money and live within their means.

Not sure where you're getting that info from because the median income in America is 40k. Otherwise, I agree with you.

[eliteballer]

Idiot Jerome Powell who was made chairman by Trump should have raised rates earlier.

[Nanners]

Not sure about your area, but here in Toronto, rents has gone up a lot more than mortgage payments did.

Rents are sky high in my area too, but rent the increases arent as brutal as the variable mortgage rates that have jumped from 1 or 2% to 6 or 7% in the last few months...

[Jasper]

pub's take over ... stocks going down as I write this ... will continue to drop.... lol

[Jasper]

Idiot Jerome Powell who was made chairman by Trump should have raised rates earlier.

yes ,, then we would not be where we are. Lesson 101

[bladefd]

No new thread from OP today??

-Inflation pulled in more than expected this month in October CPI report (7.7% vs 7.9% expected)
-Biggest single-day stock market growth since April 2020. DOW up 1,200 points, NASDAQ up 7%.