The Fed is giving homeowners no hope
Boston Condos for Sale and Apartments for Rent
The Fed is giving homeowners no hope
Pres. Trump is urging Powell to lower rates, and the Fed chief is going to cave.
Powell will lower the rates. Says Pres. Trump. “I guarantee it.”
He’s going to lower his Fed rate by 1/4%, and say, “There you go Pres. Trump!”
This is Boston condo for sale market in 2025, There’s no help coming.
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The Fed is giving homeowners no hope
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The Fed is giving homeowners no hope
National Association of REALTORS® Chief Economist Lawrence Yun condemned the Federal Reserve’s most-recent vote to raise its benchmark interest rate, calling the move “unnecessary and harmful.”
The inflationary pressures the Fed has been fighting — it’s raised rates 10 times over the last year — are finally starting to ease, with consumer-price inflation having fallen to 5% in the most-recent reading from 9% last summer, Yun noted.
“It will be even lower as the heavyweight component to inflation, which is housing rent, will inevitably slow down given the 40-year high robust construction of new empty apartment units,” Yun said in a press release, adding that additional monetary-policy tightening is already occurring.
“The fast rate hikes by the Fed have upended the balance sheets of many small regional banks,” Yun said. “They are becoming zombie-like banks, unable to lend even to good businesses as they are more concerned with balance-sheet shuffling for survival. This situation will worsen with each additional rate hike by the Federal Reserve.”
Only an end to the rate increases or perhaps even a rate cut later this year will give small banks the room they need to survive against their larger competitors, Yun said.
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Mortgage applications down 20% from this time last year, and refinance is down 80% from a year ago. More Fed hikes expected through 2022.
