Morning Blend on Mater Dei Radio: “Interest Rate Adjustment Expectation”
Recently the Fed brought down the interest rate.
What does this mean for the stock market & bond market?
Don’t fight the Fed.
Generally, lowering the interest rate winds up working in favor of the stock and bond market! Investors are happy because things continue to perform well. So much of the recent growth prior to the reduction in interest rates was actually due to anticipation of the rate decreasing.
Looking at selling your home with new rate on the horizon?
Consider this: timing your family’s move can be tricky, especially here in the PNW. Nobody wants to be fighting terrible weather on move-in day. Ideally, we might be in our new home by the holidays. But will there be another reduction in interest rates?
The Fed only has control over short-term rates which eventually trickles through the market. Mortgage rates, however, are much more closely related to 10-year US treasuries.
Because of expectations around inflation, I don’t think this cut will have the impact on mortgage rates that consumers thought it would.
I never like to be the bearer of bad news, but I just don’t expect mortgage rates to come down meaningfully anytime soon. If you DO want to buy a home, make sure you can afford that mortgage, don’t count on refinancing!
Listen to the interview
About the Morning Blend on Mater Dei Radio
Mater Dei Radio is a Catholic broadcasting apostolate dedicated bringing souls to Jesus through the Blessed Virgin Mary. We hope your faith will be inspired and deepened through our 24-hour radio broadcast, original shows and podcasts, community calendar, social media, and more!
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