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Market, a 4%, 5% will feel pretty high. i don't think it will get that high. i think 4%. you know what is amazing, neil? right now someone could buy a very expensive house and because rates are so low have a monthly payment much lower than someone that had a far less expensive house five, ten years ago. one of the reasons is the housing market is booming. so it's critical that they don't get too high, the mortgage rates don't get too high. >> neil: your very young, susan. does this scare you off? do you say oh, man, i missed the boat? >> yeah, we can't remember 18% but the millennials and the ...

That's helping power the u.s. economy. >> neil: you know, it looks like the federal reserve, charles, is poised to maybe raise rates a lot sooner, maybe a lot faster this year. how would that affect, you know, mortgages and the rest? some of these are pegged to market rates. so it's possible that market rates stay fairly even. what do you think? >> neil: you know, it's so -- i'm glad you brought that up. susan talked about the wealth effect. stock market, housing market. those are things that the fed wants to work out. even the communique yesterday, they talked about market as lot. so i'm in t...

So it's a delicate balance. markets didn't like that quite a bit of room comment to raise interest rates. we are left wondering how high they will go. >> and a delicate balance for the market. the economy over the last few years has been the market and the wealth effect. you lose the wealth effect, and that is a big problem for the economy. so jay powell i think has boxed himself in. he is darned if he does and doesn't at this juncture. but i must tell you, he's got to raise rates. the last time we had 7% inflation, i think fed funds were above 10%. the only reason they are this low because he...

On here? what do you think? >> there's this wealth effect. people say hey, i don't have to work anymore. look at my nest egg. you may have more money that you made in the stock market. but guess what? inflation will erode the amount of money that you made. i want another point here that is not economic. every study shows that people that work, neil are happier than people that don't work. families stay together longer. it's good for the families and everybody that people are working. so this idea that people can watch netflix all day and somehow that is their road to happiness, it's not. it's ...

Going to so many great things. i worry about a blow-up. i think there's a darn good reason why we have a central bank pinning rates down to 0% and printing money. it's to cover the you know what of this. if rates got out of hand, it would go up markedly. markets would react. we've had this wealth effect that have helped the economy. if that heads south, trouble lies ahead. i don't hear anybody talking about it in washington d.c. >> charles: less than a minute to go. we had a shocking adp number. we 300,000 jobs. one firm thinks that we'll have officially lost 400,000 when the number reports fr...