A recession is already here. Inflation is still high, although hope hopefully peaking. Realistically I don’t see the fed dropping rates until 2024-2025. What will it take for the fed to reverse course and decrease rates?

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If we were in a recession we wouldn’t have consumer inflation. You have to pick one…you’re trying to tell us that people don’t have any money (recession), but also people have too much money (inflation)

unemployment is less than 4%, wages are at an all time high, corporate earnings are at an all time high, and the economy is so robust that the fed has to introduce artificial economic conditions just to slow things down

If there’s a recession, nobody bothered to tell the economy

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I count the recession set up as part of a recession period.

Recession - 2020 to today. Hopefully craps to the low in Q2 2024 so we only have a year or two of what you’d consider recession.

Bidens stimulus in April bumped the M2 (money in circ) back up. It’s a toss up to see if the SC will be in lockstep with the Fed on further printing. Election coming up so u know the dems gonna try to spend more.

It’s going to take: money in circulation to continue dropping “recessive period’. Means the fed has to remain hawk until we see like a good 4 quarters of EQUAL OR DECREASE in inflation. Rn we see like 3.5 and 2.3 monthly inflation increases still. Just because it’s close to the “target rate” doesn’t mean we can let off interest rate highs, just means the rate at which we are in an inflationary period is slowing- still increasing.

We gotta actually see a starved economy “borrowing wise” before we ever see rates come down.

If they come down before a significant recession, say hello to hellish 1980s rates again.

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Additional Posts in Interest Rates

Mortgage rates jumped in the last couple of weeks to 6.28% because of inflation data, as well as the fed increasing rates by 75bps. If the fed sticks to their plans (Jul rate inc if 50bps/75bps; followed by 3 inc of 50 bps), will rates continue to range between 5.75-7%?

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For anyone that has used Lennar’s in house lender, Lennar mortgage, how do their rates compare against competitors?

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