In this episode, Daniel explores a couple of different perspectives on the current market and economy, and takes a contrarian view to the idea that interest rates are high. In a historical context, interest rates are actually at historical lows, despite the drastic increases over the past year. Viewed in a larger context, the low rates of the last 10 years were the exception rather than the rule, brought on by the housing crash of 2008 and the following Great Recession, and then by the COVID pandemic of 2020-2022 . Each were rare, once in a lifetime crisis events that forced the Fed to take drastic actions and slash interest rates to unprecedented lows. Viewed in that light, it was the low rates that were actually exceptional, rather than the current rates. We've become accustomed to these unusually low rates, which were always outside the historical norm. The pain is being felt mostly because of the speed of the increases -- not the actual rate itself. In addition, buyers and sellers should prepare themselves for the current rates being the "new normal." The Fed lowers rates mostly as a stimulus to a depressed economy in emergency situations. But as the economy stabilizes, and inflation settles, the Fed will have no reason to slash rates deeply unless a new economic crisis develops. Waiting for rates to drop may mean a very long wait! As we'll see, some of the strongest housing markets and economies in the recent past actually had mortgage rates as high or higher than what we're currently seeing. 

View the infographic used in this episode here: https://www.visualcapitalist.com/sp/visualizing-40-years-of-u-s-interest-rates/

Other links: https://themortgagereports.com/61853/30-year-mortgage-rates-chart