Quote:
Originally Posted by Azure
The rate cut will drive housing which will drive up pricing which will drive up inflation.
Tough call at this point, though the economy could use a small rate cut just to signal some confidence.
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Not really, as mortgage serving costs is what is measured. So a drop in interest rates benefits every house that comes up for renewal regardless of it changes hands or not. Purchase price only affects homes bought or sold. In addition mortgage servicing cost on purchases should be relatively constant in the absense of supply or demand changes.