Interest rates are not going back to 3%

[Chris Seveney]

I am sure many of you will disagree with me, but I am seeing a lot of posts talk about “today’s high interest rates”

I believe there are many of us who view today’s rates to be more of the norm versus the outlier.

If you look at the current data, interest rates are not going to be dropping significantly in the near future. Could interest rates get back potentially into the 4’s, yes.

But I believe the days of the federal rate being at 0% and mortgage interest rates in the 2’s and low 3’s is not something people should bank on in the near future.

It’s not only goes for acquiring property, but for those who have invested in syndications where the exit was a refinance at a low rate.

Let the fireworks begin

[Brad Jacobson]

I'm going to offer a different opinion because I believe our government has become so addicted to easy monetary policy that I bet they'll happily drop the fed rate back to 0% at the first chance they get.  Fiscal responsibility is only going to continue to get worse under our current leadership and political landscape in my opinion.  

I wouldn't bank on it happening in the near-near future but I'm fairly confident that down the road we'll have another bizarre incident like Covid or a 2008-style recession and our geniuses at the Fed will happily drop rates back to zero and keep them there way too long again in a similar reckless fashion.

Personally, I just hope my portfolio is large enough at that point that I can refinance the whole thing back into the 2-3% and be set for life.  That's what I'm banking on and looking forward to!