What will it take to bring interest rates down?

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Anthony Lamacchia: What will it take to bring interest rates down? I keep getting that question from all kinds of realtor friends. Anthony, you’re making these predictions, you said they’d go over six, you said they’d go over seven. Folks, I did say they were going over eight. I said it on July 8th, there is a real chance, a real chance that interest rates go to 8%. Said it again in August when I was in Florida, rates are going to 8% at some point. Said it in September, where did they go this week? Over eight. Guess what I think that is going to happen over the next three to four months? They’re going to go more into the eights, eight and a half, eight and a quarter in that vicinity, and we’re stuck there for a while. How do I know this? I follow the economy very closely. Consumer Price Index is still high, retail sales numbers a few days ago, there was a report, there was higher than expected. Unemployment is still very low, it’s in the threes. The economy is too hot. Why? Well, I could go on about that all day. Stimulus money, government jobs, the tons of government hiring going on, those are some reasons. But until we get a recession, yes, a recession, we need a recession to jolt rates back down. Could it happen without a recession? Yes, but it would be prolonged. Folks, we’ve been studying the early 1980s, my senior adviser Gerry, this guy is a genius. No one, absolutely no one has been more right about rates than Gerry, and he and I talk and debate all the time, and that’s what we see on the horizon. Stay tuned in, crush it in real estate. Don’t be scared of a recession because that’s the medicine the economy needs to get inflation in check, which will get housing and mortgage rates in check.

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