Updated 08/05/2025
I was hoping for interest rates to come down a little this year but so far they have not. They’re still hovering in the mid-6%’s. I’m optimistic that rates will come down to at least the high 5%’s but this might take another year and a half. If I were buying a home right now I would not pay points for a lower interest rate but rather wait till rates are down and then refinance.
It’s my opinion, that for interest rates to go significantly lower, the national federal debt would first need to be paid down at least a little bit to show the Federal Reserve Bank we can do it. Click Here To See Current Interest Rates
We are told that interest rates were raised by the Federal Reserve Bank “to slow the inflation” that was actually caused by the over lowering of interest rates by the same Federal Reserve Bank a few years back. Believable? My experience with banks has been, low interest rates are offered to tease you to borrow more money. Once you’ve over-borrowed to the brink you can ever pay back, there’s no incentive for a bank to give you a lower rate. If the bank thinks it’s safe to loan you a lot more money, they’ll entice you with a low interest rate to do just that.
An even bigger factor is our over 36 trillion national debt. That’s over $100,000 debt for every man, woman and child in the United States plus around $3000 annual interest on that debt, or over $200,000 in debt plus around $6000 annual interest on that debt for every working adult or realistically, over $350,000 for every significant taxpaying adult plus an additional $10,500 annual interest. So why exactly with the Federal Reserve Bank, a privately held bank, lower the interest on money we’ve already borrowed?
It seems inflation always follows national debt. Click here to See Government Borrowing In Real Time. You won’t believe your eyes!
If you have any questions, feel free to call me. Alex Schauffert 707 332 8301
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