The Federal Reserve (the Fed), led by Jerome Powell will decide tomorrow (4/10/24) whether they will lower interest rates further to help boost the economy. Trouble for the Fed though, is the economy, at least with the numbers they are reporting, seems to be doing quite well for itself! You may not feel that way, and most of the people I have conversations with, don’t feel that way. But, how ya’ gonna fight City Hall“? Powell, and the rest of the Fed members, have to weigh how much they may spur inflation if they do lower rates.
I am not sure that is the point…the following is how I feel about the situation. While there is a chance that lower rates could spark more inflation and make everything cost more, there is a feeling among many that the current inflation is affecting households in a negative fashion. Meaning, people are noticing it costs way more right now for groceries, gas, clothing…the items we all need on a daily basis…not to mention housing! These people would welcome some relief with lower interest rates. One of the reasons people are paying so much for housing is lack of inventory. Everyone who has a 2,3 4 or even 5% home mortgage, doesn’t want to sell their home and then find another with a higher interest rate! If the Fed begins to cut rates, this could open up the housing market. We will see what tomorrow brings and make our plans for the future based on the outcome.
If you would like to discuss this further or how tomorrow’s fed decision might affect you, call Michael Mitchell at Mitchell Mortgage 530-406-2200, 707-259-1117 or Mobile at 707-337-5970!
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