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Interest rates
 
Location: BlogsWrate's rants... and predictions    
Posted by: iwrate 9/19/2006
The Fed is meeting today. Prior to the last meeting, there were 17 consecutive 25 basis point raises. They're expected to hold steady today. My money is on rates increasing up to 50 basis points over the next six months or so, and then dropping to ease the cash crunch brought on by over-extended home buyers.
If inflation reappears and the Fed is forced to raise rates more drastically, the housing market crash will be even more severe. Currently, I'm anticipating a 40-60% correction in the OC market.
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