Rocket Companies Inc (RKT)

[SamuraiProgrammer]

Stoxjock, I want to respectfully disagree - sort of....

This is a SOFT disagreement. I am not certain of anything.

You said

We are NEVER going back to 3% 30-Yr

I agree that it is very unlikely that will happen, but there is another angle to consider.

I am not making political statements, but rather pointing out what goals appear to be in place.

IF, the Fed gets rates down that low, the US Govt. will be in a great position to refinance its long term debt and give breathing room to the budget. I believe the current administration (who will be assigning a new Fed Chair soon) will be pushing hard for such a rate.

Furthermore, with the soon coming advent of humanoid robots powered by AI which will be made more necessary due to the deemphasis of an immigrant workforce and lower interest rates will help with the transition from human to robotic labor as time moves forward. It may even be necessary to enable that to happen.

Here is a chart of mortgage rates.

Ultimately, while 3% may be unreachable, I would not be surprised to see 4%. I also believe that would be a good thing.

From the article linked above:

The 1950s, when mortgage rates were relatively stable and low, averaged around 4%. This was a period of strong economic growth and low inflation after World War II, supported by government spending on infrastructure, defense, education, and social programs.