Tag Archive for: fed rates

90% Chance of December Rate Cut; Can Foreigners Get Mortgages? Why Foreigners Want American Real Estate

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Less than two weeks ago, I mentioned that there was only a 33% chance of a rate cut in December, based on “market probabilities” (aka futures/options bets). Today, however, the likelihood of a Fed rate cut this month is pushing 90%! The reasons stem from “dovish” comments by Fed officials and weakening labor markets, with today’s weaker-than-expected ADP report (showing job losses) leading the charge.Read More

Fed Day! Rent-To-Own Is Still A Thing, But Beware! Balance Sheet Runoffs?

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Today is “Fed Day,” and the market has already “priced in” or accounted for a 0.25% cut in the Fed Funds Rate (93% chance per the betting markets). This is a quick reminder, too, that the Fed Funds Rate is only a short-term (overnight) rate that banks charge each other for overnight borrowing, and it does not always influence long-term rates (like mortgage rates).Read More

Why Are Condo Prices Falling So Much Faster Than Single-Family Home Prices?

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The Fed “cut rates” one week ago today, and mortgage rates have remained higher ever since. We’re only a few more rate cuts away from 8% mortgage rates again. 😊 I am being facetious, of course. But – this is just another reminder (my 5,234th) that long-term rates often don’t fall when the Fed cuts the Fed Funds Rate.Read More

Why Fed Rate Cuts Often Don’t Result In Lower 30-Year Fixed Rates

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The Fed reduced the Fed Funds Rate by 1/4 percent and 30-year fixed rates are actually now slightly HIGHER. I have blogged about this paradox many times b/c it is […]Read More

Good News! Fed Says Rate Increases May Halt

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We have almost 1,000 pre-approved borrowers in our pipeline and all of them breathed a sigh of relief yesterday. The reason? Two top officials from the Federal Reserve recently implied […]Read More