r/wallstreetbets • u/abishop717 • 1d ago

Discussion 5 rate cuts 😮

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2.3k Upvotes

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943

u/superhappykid 1d ago

Nice, enjoy that 1.25% Rate cut when you buy your $1600 iphone.

-4

u/Cropitalist 1d ago

I’ll save $40k on a mortgage over a $300 markup on a phone every 4 years.

47

u/superhappykid 1d ago

You have a $4 mil mortgage?

-30

u/Cropitalist 1d ago

$300k mortgage saves over $80k over 30 years going down 1.25%.

34

u/superhappykid 1d ago

You planning to buy 1 car and 1 iphone over 30 years?

-43

u/Cropitalist 1d ago

I don’t own any vehicles made by companies who have tariffs, why start now? So yes, still gonna go with saving many many 10’s of thousands on a mortgage than like $80 a year on a phone.

30

u/zakabog 1d ago

I don’t own any vehicles made by companies who have tariffs

Every automaker has tariffs. There isn't a car that's 100% manufactured in the US.

-2

u/BobAndy004 1d ago

Subaru and Toyota. Maybe Honda

8

u/zakabog 1d ago

A lot of parts still come from outside of the US, the US hasn't had the manufacturing infrastructure in place to support automotive manufacturing on a large scale in many decades.

20

u/timtexas 1d ago

Hahaha then you don’t own a car or phone then.

There is not a vehicle on the market that is made with 100% parts made in America. And even if there was the machines they use to make said parts “surprise” are from over seas.

So stop your bs. Trying to justify why we are not all screwed

17

u/superhappykid 1d ago

Ok dude, tell me how you go when you have no job when the economy slows down.

-5

u/Cropitalist 1d ago

I’m not sure why no one wants a better rate on a mortgage lol. Everyone is too short sighted. Probably not the best to have a long term financial stance on a gambling subreddit.

5

u/StarGaurdianBard 1d ago

I’m not sure why no one wants a better rate on a mortgage lol. Everyone is too short sighted

The irony in how contradictory this statement is. It's short sighted to want a rate cut on a mortgage when it comes with inflation skyrocketing. Mortgage rates can be cut in a couple years when the market is fully stabilized and it'll cost you a couple thousand dollars. Inflation on the other hand is permanent and will cost you hundreds of thousands of dollars throughout your life.

For example, your car that you claim is all American isn't. It has parts made outside of the country. It has raw resources from outside the country. There isn't a single car company in the US that gets all of its metal, parts, chips, etc made in the US.

4

u/crimepais 1d ago

What are you talking about. Non US parts imported are subject to the Tariff, even when assembled in the US.

3

u/Foxintoxx 1d ago

My brother in christ everything has tariffs now except russian imports .

6

u/SpezIsABrony 1d ago

Not for all the people who refinanced during covid and haven't bought a new home since.

4

u/YoungXanto 1d ago

Yeah, bought in 2018, refid in 2021 for 2.37 on a 30 year.

I am looking forward to lower rates so that I can take out a home equity loan and throw it all in a margin account and gamble on 0dte puts though.

1

u/SpezIsABrony 1d ago

Why gamble on 0DTE puts when you can confidently invest with 0DTE puts?

-2

u/Cropitalist 1d ago

If they want to move again, they will want a lower rate than 6.5%

6

u/BVoLatte 1d ago

Too bad the cost of materials for new houses is going to skyrocket which in turn is going to increase the price of every home construction. No one is going to be able to afford homes, going to be pushed further into rental economy.

3

u/marcus55 1d ago

it won't stay at 1.25% for 30 years lmao. 1.25% is a manufactured rate and is not normal. Post 08 was not the norm

3

u/Cropitalist 1d ago

That’s not a 1.25% rate, it’s a decrease of 1.25% - so like going from 6.5% to 5.25% saves over $80k.

0

u/marcus55 1d ago

Ah understood, yea thats the trap of credit over a long period. Haven't done the calculations but people would be surprised to realise the kinds of money they are paying on interest if you put the minimum deposit down and do the maximum period.

1

u/sopunny 1d ago

Unless the principle increases, which will happen because house prices go up