What does that mean for you and your money?
29 MONTHS!!!! THAT’S HOW LONG WE’VE BEEN WAITING!!!
Uncle Jerome started raising rates in March 2022. That would continue over the next 16 months to an UNPRECEDANTED 5%.
That’s the hardest the Fed has ever slammed on the brakes.
And it mostly worked. The highest inflation we’ve seen in 40 years slowed…ever so slowly… until now where it’s kinda flat-lined.
Unfortunately that doesn’t mean prices will go back to where they were, but it DOES mean they won’t keep growing out-of-control.
START HOUSE HUNTING!!!
The consensus among economists is that they’ll drop rates another 2% over the next 2 years.
That means mortgage rates should drop below 5% before 2026 is over.
So if you’ve been holding off – or if even if you bought anyways – you’ll be able to buy – or refi – soonish.
LOCK UP YOUR MONEY!
Recently, you could earn as much interest in a high-yield savings account as you could buying bonds – so why bother with bonds?
But as rates drift lower, you’ll earn less and less interest in your savings account.
So if you have chunks of money set aside for a new car or renovations or even taxes, then consider buying bonds.
That will lock into yields where they are NOW, not 1% lower a year from now.
IF YOU’RE JOB HUNTING
If you got caught up in the layoffs of 2022 and you’re still looking, consider gigs at small and medium-sized companies.
Those companies rely on cheap financing much more than big tech does.
So when rates start to drop, THEY start to hire!
THE TAKEAWAYS
– Inflation has been tamed!
– You can buy a house / refinance at much lower rates soonish!
– Lock in current yields with bonds for your short-term goals
– Look at small and medium-sized companies for job opportunities.
The Fed lowered rates 0.50% yesterday. Woohoo!
What does that mean for you and your money?
29 MONTHS!!!! THAT’S HOW LONG WE’VE BEEN WAITING!!!
Uncle Jerome started raising rates in March 2022. That would continue over the next 16 months to over5%.
That’s the hardest the Fed has ever slammed on the brakes.
And it mostly worked. The highest inflation we’ve seen in 40 years slowed…ever so slowly… until now where it’s kinda flat-lined.
Unfortunately that doesn’t mean prices will go back to where they were, but it DOES mean they won’t keep growing out-of-control.
START HOUSE HUNTING!!!
The consensus among economists is that they’ll drop rates another 2% over the next 2 years.
That means mortgage rates should drop below 5% before 2026 is over.
So if you’ve been holding off – or if even if you bought anyways – you’ll be able to buy – or refi – soonish.
LOCK UP YOUR MONEY!
Recently, you could earn as much interest in a high-yield savings account as you could buying bonds – so why bother with bonds?
But as rates drift lower, you’ll earn less and less interest in your savings account.
So if you have chunks of money set aside for a new car or renovations or even taxes, then consider buying bonds.
That will lock into yields where they are NOW, not 1% lower a year from now.
IF YOU’RE JOB HUNTING
If you got caught up in the layoffs of 2022 and you’re still looking, consider gigs at small and medium-sized companies.
Those companies rely on cheap financing much more than big tech does.
So when rates start to drop, THEY start to hire!
THE TAKEAWAYS
– Inflation has been tamed!
– You can buy a house / refinance at much lower rates soonish!
– Lock in current yields with bonds for your short-term goals
– Look at small and medium-sized companies for job opportunities.
