Construction News and Media
NEWSLETTER

November 16th, 2023

Your best location for construction news, education and media.

Bringing conventions to your phone since 2022!

This week we will be reviewing the idea of the fed lowering rates to make home mortgages 3% again. Do you think it would be a good idea? Poll at the bottom!

Robert F. Kennedy proposed a plan to lower rates for first-time homebuyers. He suggested that the government should provide financial assistance to these buyers by offering them lower interest rates on their mortgages. This would make it more affordable for individuals and families to purchase their first homes and help stimulate the housing market. Kennedy believed that by reducing the financial burden on first-time buyers, more people would be able to enter the housing market and achieve the American dream of homeownership. Is this a good idea? Should rates drop to 3.00% again? Poll at the bottom!

Black Friday deals for all Newsletter Subscribers. Basic web design and seo packages for $99.99 a month or $999.99 for the year. More advanced plans and a tailored approach to every client Contact us for a free consult. Email - [email protected] 

Phone Number - (435)-315-8984

So a quick recap on interest in America over the years.

Interest rates in the United States have experienced significant fluctuations from 1800 to 2023. In the early 19th century, interest rates were relatively high due to limited financial infrastructure and the risk associated with lending. However, as the country developed and established a more stable financial system, interest rates gradually declined. The late 19th and early 20th centuries witnessed relatively low interest rates, reflecting economic growth and stability. The Great Depression in the 1930s led to a sharp decrease in interest rates as the government implemented expansionary monetary policies to stimulate the economy. Following World War II, interest rates remained relatively low until the 1970s when inflation surged, prompting the Federal Reserve to raise rates significantly. The 1980s and early 1990s were characterized by high interest rates as the Fed aimed to combat inflation. However, from the mid-1990s onwards, interest rates generally declined, reaching historically low levels in the early 2000s. The 2008 financial crisis prompted the Federal Reserve to implement unprecedented measures, including near-zero interest rates, to stabilize the economy. In subsequent years, interest rates remained low to support economic recovery. As the economy improved, the Federal Reserve began gradually raising rates in the 2010s. However, the COVID-19 pandemic in 2020 led to another period of near-zero interest rates to mitigate the economic impact. Looking ahead, interest rates are expected to gradually increase as the economy recovers, although the pace and timing will depend on various factors such as inflation, employment, and monetary policy decisions.

Recently the PBD Podcast they have been talking about a reverse market crash. I love the content and hearing their take on what is going on in the market and also what he thinks could happen. I would like to play devils advocate and argue that we already had the reverse market crash from covid hangover. Rich got richer and poor got poorer. Will a lowering of interest rates really help young Americans get their foot into homeownership or leave them extremely upside down when the market gives way?

Now I personally I have come to a cross roads, I think lower interest rates will boom the market and could make it more affordable for young families to get into a home. On the other side, I like many others in the industry have seen areas of America nearly double in price in the past 36 months and we know that this is not sustainable in any way. When homes in Florida and Texas went from 300K to 600 K. Or in the mountain west like Idaho, Utah and Montana where homes went from 800K to 1.4 Million in the same time frame. Locals are priced out / House poor and it is not sustainable after all, there can’t constantly be a flow of high income out of state buyers willing to pay whatever the cost because it is so much cheaper than where they are fleeing. Let us know your thoughts on the poll below!

Check out what we are watching and follow our socials for more content!

See you next week when we talk about ZIP Systems VS Normal Plywood sheeting!