[INFOGRAPHIC] Home Buying Interest Rate Myths Slayed
The Fed is having problems raising interest rates because the economy is weak, and the economy is weak because people don’t want to spend (whether it’s buying a house with the low interest rate or otherwise).
But here’s the irony in all this: Many people — and they are called savers — aren’t spending because interest rates are too low and they are being deprived of income on their savings accounts.
Interest Rates Myths
So, to bring it full circle, the Fed can’t raise interest rates because the Fed hasn’t raised rates. The secret tax on savers in the form of low rates on their accounts is the heart of the problem.
– Interest rates are still below historic numbers.
– 88% of property managers raised their rent in the last 12 months!
– The credit score requirements for mortgage approval continue to fall.