The average lender is offering a rate between 4.125 and 4.25 percent, with more aggressive lenders going to 3.875 percent for borrowers with pristine applications, according to Mortgage News Daily. The average rate was at 4.40 percent before the Federal Reserve’s announcement Wednesday that it would not raise interest rates this year and that it would start buying bonds again. [Source]
The Fed is doing what it must. It waited too long, but still. It really never should have started raising rates.
It should have really waited until price inflation was truly rising due to wage pressures due to labor shortages.
My target under their system was under 3% unemployment and 5% price inflation as the peak. I would have dialed things down from there in a gentle taper.
Doing things that way would have put us in full recovery mode right away at least as far as monetarism can impact things.
My first choice was 10 times the fiscal stimulus Obama put through.