Ep. 165 - Will the Fed Cut Rates SOON? | May Lending Update Pt. 2
Are you trying to make sense of the rollercoaster ride that is today's mortgage rates? In this episode, Quinton and Daniel dive deep into the latest economic data, dissect comments from Atlanta Fed Chairman Raphael Bostic, and debate the burning question: Will the Fed cut rates in 2024? Along the way, they explore the intriguing relationship between the CPI, PCE, and mortgage rates, reveal why the Fed's return to the bond market is a bigger deal than most realize, and share their bold predictions on what it will take for rates to finally come down. If you're a homebuyer, real estate agent, or mortgage pro trying to navigate this challenging market, this is one episode you simply can't afford to miss.
[00:00 - 01:16] - Introduction
[01:16 - 03:09] - How to get the best mortgage rate
[03:09 - 07:13] - Uptick in unemployment & slower wage growth
[07:13 - 10:06] - Fed's adamance on reaching 2% inflation target
[10:06 - 13:12] - CPI vs PCE
[13:12 - 15:03] - “Real” interest rates
[15:03 - 17:39] - Fed slows balance sheet reduction
[17:39 - 20:03] - Rising interest payments on national debt
[20:03 - 21:17] - Return of top buyers to the bond market
[21:17 - 22:00] - Mortgage applications
[22:00 - 23:28] - What will it take for the Fed to cut rates?
[23:28 - 24:49] - Closing thoughts
Resources:
Secret to the BEST Interest Rate: https://bit.ly/wy1msecret
May Lending Update: https://bit.ly/4bMNDzx
PCE vs CPI: https://bit.ly/3yywpHT
Key Quote:
"The labor market is the quickest path to rate cuts." - Daniel Halvorsen
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