It’s Fed day and in 90 minutes we’ll hear what Jerome Powell has to say about why they cut 1/4% and what the Fed will be watching for to determine their next move. It’s only 42 days until the FOMC meets again and there’s a 79% probability for another 1/4% rate cut on October 29th. Then a 66% chance of a further 1/4% cut in December. Mortgages are cautiously starting to lower prices on the lower rates because of this increased expectation for a combined 3/4% Fed cut in 2025.
Lower rates will of course be a boon to the housing market. Warren Buffet’s Berkshire Hathaway invested $1B in each Lennar and DR Horton so far this year. The Oracle of Omaha is seldom wrong and I can back up his forecast; I’m already starting to see an uptick in purchase action over the last few weeks.
OH! One more thing, I can do conventional loans up to $819,000 starting today.
