FED Holds Steady

[Mark K]

2-9. But a high percent of economists are for lowering the rate and Powell has the upper hand and few will challenge his decision. The fact even 2 did is testimony to the pressure to lower the rates. And Powell has demonstrated his propensity to delay raising or lowering rates until it was well past the point a change should have been made. But he will be gone in May. No doubt of that.

The knee-jerk reaction of the Fed is generally the problem. Rates should never have been raised as quickly as they were. Maybe they're figuring out that its best to take a measured approach than to bend to the whims of a somewhat reactionary President. Dropping the rates quickly will only cause housing prices to take off again to even-more unsustainable levels. Housing prices need to fall, not increase again. Quickly dropping interest rates won't help the market in the long run.

If current interest rates were an actual problem, the stock market would reflect it; the market's doing fine.

 

[Bobby Bucks]

Who would you prefer to be in charge of the nation's money supply? An elected politician/s trying to get re-elected? Biden and his criminal cartel? Nando?

I would prefer Ron Paul be in charge of the Fed, he would audit it and then dismantle it. Plus, today is his birthday, happy birthday Ron Paul.

 

[Terrel L. Shields]

Today the report is that mortgage rates have risen again, and mortgage applications have fallen. Fed fail in my book.

 

[Zoe]

Today the report is that mortgage rates have risen again, and mortgage applications have fallen. Fed fail in my book.

I imagine some real estate agents and builders and appraisal management companies are hurting. Fannie and Freddie too.

Prices are not falling locally, and demand is exceeding supply on single family.

Days on market are very low. That is general statement. None the less, the single family market is strong still locally.

Not near as much activity as there has been in past.

I can survive doing a little. But take real estate agents, appraisal management companies and gse(s)?

They have to get volume to pay expenses to operate.

 

[Zoe]

Locally, I have no clue what builders are losing illegal immigrants as builders.

I just haven't seen it on local news.

Makes no difference, most of new construction I have witnessed are of Hispanic origin building the housing.

How many have been deported? I have no clue.

They don't speak good english, but they work on building houses. Legal or Illegal? I have no clue.

When I am doing new construction or whatever, I don't ask for identification cards. That is not in my job description. Checking identifications is outside my realm of responsibility.

I can see a hispanic person cussing me out and I didn't even know it. LOL

I know one thing. My wife loves mexican food. We have some really good mexican restaurants. But we don't eat out much. We cook at home most of the time. I taught her how to cook. We are pretty good cooks.

I worked 2 years as cook and other things in college. I grew up with some awesome cooks in my family.

I learned from some excellent chefs.

 

[Mark K]

Today the report is that mortgage rates have risen again, and mortgage applications have fallen. Fed fail in my book.

Looks like Econ 101 to me.

 

[Zoe]

Banks float long term mortgage rates with 10 year T bill rate.

Look at this chart.

10 Year Treasury Yield (1962-2025)

Interactive chart showing the daily 10 year treasury yield back to 1962. The 10 year treasury is the benchmark used to decide mortgage rates across the U.S. and is the most liquid and widely traded bond in the world.

www.macrotrends.net

 

[Zoe]

There is an inverse relationship between 10 year t bill rate and long term mortgage rates. Look:

How Does the 10-Year Treasury Yield Affect Mortgage Rates?

Where the 10-year Treasury yield goes, so do mortgage rates. Learn why they're connected and how it impacts homebuyers.

www.kiplinger.com

Long term mortgage rates are not really tied to the fed funds borrowing rate to banks. Two different segments.

Long term mortgage rates are tied to 10 year treasury yield rate on inverse relationship.

Many loans are tied to fed funds rate to bank on overnight borrowing or lending to federal reserve.

Credit cards, car loans, interest on interest bearing checking, savings accounts and certificates of deposits.

Home equity loans. Short term real estate mortgages.. Have to look deeper at what fed funds rate impacts on interest rates.

 

[Zoe]

I am preaching to the choir with Terrel. He knows. Terrel probably does very little gse loans. The man knows how to appraise complex properties.

I would wager most of the loans he does appraisals on are maybe 1 year to 5 year interest rate lock. Some may float with fed funds rate.

They are in house loans. The bank is not selling the loan to a gse.

 

[Fernando]

Who would you prefer to be in charge of the nation's money supply? An elected politician/s trying to get re-elected? Biden and his criminal cartel? Nando?

Nando of course. He would not succumb to Trump's influence since Nando has experience as an objective independent appraiser.