Here are some quick thoughts on rates and the Fed. I meant to publish them last week but they got lost in my drafts folder…
- It seems the consensus is now pointing to Yellen and the Fed raising rates in June since the labor numbers keep getting better.
- Personally, I think June may be too soon. I’m not sure the markets are ready and I really don’t like the wage growth or real estate numbers.
- I’m also still not sold on the idea that the Fed is ready to move rates yet.
- It would be nice to see what one more Summer of low rates could do for housing. I hope the increased labor force leads to more competitive wages and that these increased wages leads people to buy a house at these low rates. Of course, the fear rates going up may drive people to buy during the Spring. As always, we shall see.