Powell is keeping rates too high and keeping SFR sales low

[Zoe]

Ever wonder where SFR rates are currently in Europe?

AI: France: Mortgage rates have averaged around 3.5%–4.2% in mid-2025 for long-term fixed-rate loans, although 25-year loans tend to be priced near the upper end of this range. Rates in France are generally lower than in the UK for principal residences, especially for lower loan-to-value (LTV) ratios and well-qualified buyers. (This is based on recent mortgage market analysis and typical offers in major French high street banks; see inference note.)

England (UK): The average fixed mortgage rates are about 4%–5% as of July 2025, with some lenders offering slightly below 4% for shorter fixed terms at lower loan-to-value ratios. For a 25-year term (which is typical in England), expect rates close to these averages.

Germany: Interest rates for 25-year fixed mortgages are typically in the 3.8%–4.5% range, depending on the provider and LTV. Germany’s rates are somewhat similar to those in France, though slightly higher for longer fixed terms. (Based on German mortgage aggregator data and news commentary up to mid-2025.)

Bloomberg:
Sales of previously owned U.S. homes fell in June to a nine-month low as potential buyers continued to bristle at record prices and high borrowing costs. Contract closings decreased 2.7% in June to an annualized rate of 3.93 million, a report from the National Association of Realtors showed Wednesday. Economists surveyed by Bloomberg expected a 4 million sales rate.

The median sales price increased 2% in June from a year ago to $435,300. Home prices continue to rise even after a recent pickup in inventory.
“Multiple years of undersupply are driving the record high home price. Home construction continues to lag population growth,” Lawrence Yun, NAR chief economist, said in a statement. “High mortgage rates are causing home sales to remain stuck at cyclical lows.”

Thanks for sharing. Interesting. Remember long term mortgage rates on SFR in USA are pretty much tied to the 10 year treasury note rate. I heard USA is currently paying like 1 trillion a year in interest on treasury notes. It may be more than that. I think 10 year note was paying somewhere around 4.3 or 4.4% interest recently.

Whatever the 10 year treasury note is paying in interest is where long term mortgage rates fall. The 10 year treasury note pretty much controls long term mortgage rates in USA on Single family residential loans.

 

[Zoe]

Another thought. I am sure some foreign investors borrow money locally in their nation and buy single family residential properties in USA and rent them out.

Some probably flip them.

 

[Zoe]

I don't even want to guess how much real property investors in China own in the USA. Trust me it is a bunch. And China is just one nation that owns real property in USA.

 

[ZZGAMAZZ]

When the Federal Reserve lowers interest rates, several psychological influences affect consumer behavior, generally leading to increased spending and borrowing.

Not to worry though.
he Federal Reserve’s Federal Open Market Committee (FOMC) holds eight regularly scheduled meetings per year, typically spaced about six to eight weeks apart. These meetings are where they review economic conditions and decide on monetary policy—like adjusting interest rates or tweaking asset purchases.

Who literally determines the Fed rate? Does the chair himself have the only 1 vote that matters?

 

[Carnivore]

The Federal Reserve’s interest rate decisions are made by the Federal Open Market Committee (FOMC), which has 12 voting members:

• 7 members from the Board of Governors (appointed by the President and confirmed by the Senate)
• 1 permanent seat held by the President of the New York Federal Reserve Bank
• 4 rotating seats filled by presidents of the remaining 11 regional Federal Reserve Banks, serving one-year terms on a rotating basis

Even though only 12 vote, all 19 participants (including non-voting regional bank presidents) attend meetings, contribute to discussions, and shape the policy outlook. The FOMC meets eight times a year, and votes are often unanimous—but not always. Dissenting votes do happen, especially when inflation or employment data sparks debate.

 

[RCA]

Who literally determines the Fed rate? Does the chair himself have the only 1 vote that matters?

Oh yeah, he has only one vote and the majority (7 votes) of the 12 votes decides the outcome - but the "Chair" gets to determine, more or less, what gets voted on, he is in a central leadership position, he is the one who give speeches to the public, and therefore, it is effectively tough to get around the opinion of the "Chair."

 

[Carnivore]

Hey Bert wile your here I have a question for you. I know you use grok and your an expert.


Tell me how you deal with hallucinations?

 

[glenn walker]

Fire Jerome Powell he doesn't have a clue and wants to destroy the winning Trumps giving America.

 

[Carnivore]

He hates Trump. And He is being Kind of petty about it.

"Capitalism is the manistation of your liberty"


While Friedman may not have used the precise wording "Capitalism is the manifestation of your liberty," his writings clearly convey the strong link between capitalism and individual liberty and the idea that one is intrinsically connected to the other.

 

[Zoe]

Who literally determines the Fed rate? Does the chair himself have the only 1 vote that matters?

No