So, all things being equal, what is the Federal Reserve’s “natural rate”? The ideal rate that creates the so-called “three bears economy”…not too hot, not too cold. Used to be around 5%, but many seem to think it’s more around 2-3% today. Why does this matter? Because it tells a lot whether the Fed wants to raise rates or lower them (long term) and where we might be headed with our home and consumer loans in the near term. Our hosts Hamid and Fay Hamadanchy then dive into some more “macro economic trends” that factor into those Fed decisions (mainly the jobs report and “consumer demand”) and how perplexed they are that job growth has been slowly but steadily growing since “The Great Recession” (except for THIS week’s poor performance) while consumer demand remains stubbornly weak. What’s going on? Find out in this week’s fascinating look at housing prices and loan rates as they try and peer into the Fed’s crystal ball and see where we headed this year. Only on Orange County’s only community radio station, www.OCTalkRadio.net.
Archive for the oc housing connection Category
What is the Fed’s NATURAL RATE?
Posted in oc housing connection, Uncategorized with tags OC, oc housing connection, OC Talk Radio, octalkradio, Orange County, Orange County Talk Radio on June 15, 2016 by OC Talk RadioBuying a Home with Funds from Your 401K
Posted in oc housing connection, Uncategorized on June 15, 2016 by OC Talk RadioThis week’s wide ranging discussion starts off with our weekly look at what the Fed is or isn’t going to do with interest rates right now (a topic on everyone’s mind) and moves into a deeper discussion about how the Fed is really just there to control American Consumer Demand. That means it does not really factor in world economies and whatever demand there might be for our products overseas, especially with our dollar being so low relative to other currencies. So are they missing key elements when it comes to deciding whether to pump the economy or slow it down thru their control of the Federal lending rate…the so-called “discount rate” the Federal Reserve charges commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank. You decide. Then listen to the last part where our hosts Hamid and Fay Hamadanchy discuss using funds from your 401K to purchase your next fund. You won’t want to miss this one! Only on Orange County’s only community radio station, www.OCTalkRadio.net.
Does the Fed NEED to raise rates?
Posted in oc housing connection, Uncategorized with tags OC, oc housing, oc housing connection, OC Talk Radio, octalkradio, Orange County on May 25, 2016 by OC Talk RadioDoes the Federal Reserve actually WANT to raise rates regardless of whether they NEED to right now? Is it more than just holding off inflation? Or do they see some larger crisis looming over the horizon which they feel REQUIRES them to raise rates (regardless of its short term effects on the election or the economy) so they can cut them back again in response to some unforeseen stock market correction, China meltdown or Eurozone explosion? That’s the question our hosts Hamid and Fay Hamadanchy debate today (along with yours truly, the “everyman” on the show). For if (as some speculate) there is surely a stock market correction coming or some Euro/China storm just over the horizon, then what could the Fed do if rates are already at or near zero? Go into negative territory as some banks in Europe have already done? And how would banks continue to make money if interest rates were BELOW zero? It’s a fascinating look at “macro-economics” today on OC HOUSING as we argue over not just IF or WHEN the Feds will raise rates but do they feel COMPELLED to do so (regardless of the short term effect on the economy or election) to give them ammunition for some future economic crisis? You’ll want to hear this one!
The Economic Effects of our Election
Posted in oc housing connection, Uncategorized with tags OC, ochousing, octalkradio, the housing economy on May 19, 2016 by OC Talk RadioDon’t miss this wide ranging discussion about the possible economic impacts of our upcoming national election. How will the stock markets react (or will they?) What could massive deportation or immigration bans mean for our economy? And why isn’t Wall Street more nervous about the political revolt happening on Main Street America?
When is the best time to sell your home?
Posted in oc housing connection on May 11, 2016 by OC Talk RadioAfter we take our usual quick look at the real estate market and the macro trends affecting it (like lower job reports and worries out of China), our hosts Hamid and Fay Hamidanchy explore when the best times to sell your home nationwide and here in Orange County. And the results may surprise you. They also end this week’s installment of this week’s OC HOUSING CONNECTION with a quick review of “alternative ways to establish credit”, particularly for those aging baby boomer (like me) who’ve paid off their houses and/or ripped up their credit cards and restrained themselves from buying anything big…leaving them with suddenly little or no credit history in this last chapter of their life. Learn why too much frugalness may work against you and how to work around it if you still want to buy another home someday on credit (and invest the cash from your existing home for needed cash flow after you retire). Fascinating ideas from Orange County’s only community radio station, www.OCTalkRadio.net.
Adjustable Rate Mortgages (ARMS) are still around
Posted in oc housing connection on May 11, 2016 by OC Talk RadioIn a world of low, fixed rate mortgages, you wouldn’t think the old adjustable rate mortgages (ARMS) so popular in the 90s would still be around. But you’d be wrong! Today our hosts Hamid and Fay Hamidanchy discuss their past experience with these popular products, how, why and where they can still be found and who might benefit from using one. For example, most of us refinanced our homes somewhere before or after the “Great Recession” to take advantage of incredibly low, fixed rate loans. We did this to take the risk out of potential rises in our loan costs (particularly those of us that had risky “high cap” loans that could soar someday into double digits). But did we actually come out ahead? We removed the risk but may (in fact) may have paid MORE over the last few years for these fixed rate loans, particularly since the indexes on which they were based (like LIBOR) also remained so low. ARM yourself with some amazing facts about adjustable rate mortgages on this week’s installment of OC HOUSING CONNECTION and see how you fared here on Orange County’s only community radio station, www.OCTalkRadio.net.
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