Jan 11, 2019|
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
We're joined now by Greg McBride Bankrate dot com discussing his views on interest rates and the markets are between nineteen Greg we've seen a pretty strong recovery from what was a debt that we can all agree pretty terrible Q4 of last year. So far in junior where do you think it is sort of the Jonas Bob what do think markets are heading for Torre nineteen. Well I Kinect dictate the economy still in good shape and he'll week and a addict glass half empty pews there in the fourth quarter that he'll like be about. Market falling away that they weren't ridiculous there's economic clouds part and people vote against being bit. Guises study. You know that we're gonna steal the market you know continued trend higher. But there's going to be some bumps along the way amniotic fed policy is gonna continue to it will be an issue that overhang the market but we get any kind of resolution there or positive headlines. On the China trade situation he IP that just that spear further fuel to. To a market rally. But you know later in the year I'd take you do think that some of those economic concerns. That people had coming in the year I will be you know I take a much who. Better founded later in the year I right now there are very concerned that you know selloff was overblown. Later in the year that might not be the case though he'll I would expect volatility. This year. But where we end up at the end of the year is going to depend entirely on. You know whether the economy continue to chug along the war you know if we do is look like we're heading into a bigger slowdown or recession. That's really got to pick it up on the market. Are discussed this earlier what do you make of I'm gonna call Powell's almost 180 here between you know this summer and at this point December and January. Seems like he's really had quite a turnaround from being pretty hawkish to pretty dovish going forward. Where do you think we end up in terms of interest rates how many more rate hikes were heading towards. I expect we're gonna get to rate hikes this year. Figure right and the net EE how has been you know pretty close school 180. Lleyton you know that's what Baltimore pulled to right but he he he peace started to tell investors what they wanna hear and what would be called the market the the double down and started to rebound and I wonder of wonders. And so but the economy still in in in solid shape but they've got the latitude to. Raise rates. You know they've also got you know they've also created the flexibility for the Atlantic what we're gonna get away from though is that studies and Oakley breed like every three months. Like clockwork as has been the case over the past couple of years so I do expect we'll get to rate hike this year I think is going to be a little bit more spread out than what we've experienced the past couple years. John talked to a lot of folks that have these he locks they might have opened up 56 years ago when rates were dead low. And you know still carry 2000 what do what does this you know how does impact the average person Sega 30000 dollar balance on a home equity line you haven't really paid enough and it paid much attention to it. What are these rate has really do idea. Well it's the cumulative effect is really grow and instead I rates nine times already. You also you know back home equity or ideally it's like running into a stiff wind with a parachute behind your back you know it either. Dragging down entire balance in debt that I don't support higher interest rate environments so the minimum payment on that 30000 dollar home equity line. Has gone up over fifty bucks. And that started the bike racer had just been notable in that so yeah he's still haven't actually start to chip away the ballots so. Each. Individual rate hike by itself is incrementally pretty small and not something that people noticed that the cumulative effect. As really started the men out and he also had tight budget he did it's getting a little bit more strain. As interest rates go up so home equity lines they ended credit cards in particular. That's where consumers are feeling the effects burst. He and even higher rate within one or two state. They certainly are Greg McBride of Bankrate dot com really appreciate joining us I agree we get it right. Yes I mean hey they won the one positive area here is you know and get a pretty good rate of my money market these days finally. One and in tough I mean if you're someone like Tucker. Interest rates at least in the short term of come down so for potential buyers especially if you're seeing more price cuts and things like that compared to be you know six months ago I mean we had mortgage rates up at 5% support for five to Wear down dropped pretty quickly you know so that does potentially if you see you know a 3% price get on property in mortgage rates are down half percent. That properties down 8% more affordable than used to now so. Tucker this can be the Dan Olson. Optimistic right this is how are you feel beaten up by Fatah gravity yeah a lot of sailing a lot more optimistic for him to fourth and you're expecting a and death literature and yeah but I got me one on Russia and I'll pretty. Comfortable out when Aaron. Yeah pretty busy with so what's your sleeps gets a bit like this week is Barea is resistant to pick it out what's sleep but that it. He's all man is a pain in the pain in the ass to put to sleep last night took like assault two hours what was going on. I don't know he just would wouldn't have had baby Jacobs media. What you explained to him that's bad time he needs to go to bed and that it's time for him to be all I know like him a stern talking to he was inhabitants. He just. Did not wanna ghostly enemy you have to think about really being born is probably one of the most dramatic experience in the life like. Everything's taken care where you don't have to eat you don't have to breathe and all of a sudden you're thrust out of this world with strange people looking at you turn you around. Wrapping you up all hallows and stuff and it's like. It's not surprising that babies want a crime most of the time that is a want to feel bad like you know some people obviously want CM and I'm. Totally cool that legislate from the kids' perspective it is like. Mean who the hell aren't really hit the heck would like to me but let's call nurses and everything yes thought first that person smells bad dispersants talked -- -- -- that annoying voice this one's trying to be mean I don't want shrimp silly get a get that away from me it's very late this one's allowed guys decade can't see anything at this point anyway Adori about a week city and we surely stand the light of the baby Tucker's due go idle you have no way agency all you do get handed from person to her right. Exactly it's just it's it's not for me and happier rout of the.