Who do interest rates really matter to most?

'Grow A Pair' Author Larry Winget weighs in on whether low interest rates are refueling the global housing bubble.

Do Interest Rates Matter to the Average Person?

Economic Indicators FOXBusiness

Swiss lender UBS Group said low interest rates have created a housing bubble in key cities across the globe, with Vancouver and London most at risk.

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Rising housing prices, which have extended to cities such as Stockholm, Sydney, Munich and Hong Kong, will only be corrected when this bubble bursts, according to UBS.

During an interview on FOX Business Network’s Cavuto: Coast-to-Coast, the “Grow A Pair” author Larry Winget said he doesn’t think anyone needs to worry about a housing bubble bursting in the United States.

“I don’t think we have to worry right now in our country. Interest rates matter a lot to you and me, and it matters to people in the economy and the banks and so-fourth. But to the average guy on the street – I mean the guy with the average job, average number of kids, average amount of income—the interest rates don’t really matter that much to him,” Winget said.

Winget said interest rates are not the deciding factor for someone who is considering buying a home or taking out a loan for a new car.

“What matters to this guy is that he lives in the house and he’s got more kids than he does bedrooms, or he’s got a promotion and now he can afford a little more and he’s gonna buy, he’s gonna borrow whether he sees the interest rates go up a point or down a point. None of those things really matter to the average guy.”

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According to Winget, the risk of playing the “quick” and “easy” money making real estate game of the past could result in losing your long-term financial gains.

“Well the words ‘quick’ and ‘easy’ rarely have much to do with long-term financial gain, in my opinion. I used to be one of those guys that would buy property sight unseen. It was a good time to do that back in the day. And I got burned a little bit on a few of the properties too—we all did. I think that played that game. And remember when you play a game, and that’s what this is, there’s likelihood you may lose that game,” Winget said.

Winget suggests young investors should look at opportunities outside of the real estate market for long-term investment opportunities.

“I think that we need to take a deep breath and especially young people who are looking at good investments. I think there might be a better way to win long-term than throwing your money at real estate when that might not be the best place to put it right now,” Winget said.

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