Ep. 206 - Is The Next Rate Cut Coming? Here’s What 40 Years of Data Tells Us

Is the Fed's rate cut addiction setting us up for sub-5% mortgage rates?

In episode 206, host Quinton Harris dives deep into the recent CPI and PPI reports, talking about their implications for the economy and future Fed decisions. Quinton breaks down the interplay between inflation metrics, job market data, and the Federal Reserve's monetary policy, offering you a clear picture of what's really driving economic trends.

Here we share the historical pattern that could signal a significant drop in mortgage rates. Drawing from 40 years of data, Quinton explains why we might be seeing sub-5% mortgage rates again, and why 2025 could be the year for refinances and home purchases. Whether you're a homeowner, a prospective buyer, or just interested in economic trends, this episode will give you valuable insights into what the future might hold.

[00:00] - Introduction and overview of CPI and PPI reports

[01:07] - Breaking down the Consumer Price Index (CPI) and Producer Price Index (PPI)

[03:34] - Federal Reserve's focus on job market data

[05:20] - Analysis of Fed commentaries on inflation readings

[10:54] - Investor psychology during Fed rate cut cycles

[14:00] - Historical patterns in 10-year Treasury yields after Fed rate cuts

[15:00] - The potential for a refinance and purchase wave in 2025

Key Quotes:

"What's moving the Federal Reserve is the job market." - Quinton Harris

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