July rate cut from Fed is 'now completely off the table' following solid jobs report

Massive hiring by local and state governments is interesting. Wonder if they are scooping up all the laid off federal workers

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so I’m not understanding why they are not going back to pre covid rates??

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High inflation up until recently, history says it was be a very slow set of steps downward

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Joe Brusuelas, RSM chief economist,

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I believe he may be suffering from 24 hour news cycle bias.

If the July report of inflation numbers for June come in with the year-over-year number drifting down to near 2.0% I believe the Fed will ease by .25% in spite of the labor numbers.

House sales in June are going to be horrific.

Believe May was down 14% vs April.

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Have you saw inflation??? Prices of homes??? People artificially afforded these bc payments were lower with lower rates, and owners jacked up prices accordingly. Also that would bring savings, cd rates down as well (someone correct mention wrong here)

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I could not give two fricks about the 3.6% I’m getting in my money market and HYSA.

I would love to refi my mortgage and not pay 43k a year in interest.

If I had a paid off house I’d want the higher rate on my savings

Come on BBB! Need that salt tax raised.

Anyone pushing for rate cuts is just a moron at this point. I wish Trump would just STFU about it.

Dollar is already crashing
Job reports are solid
Economy/Stocks are solid
Inflation is ticking back up

Rate cuts should be used in times of need. We are not in a time of need. We are in a time of excess and riches.

We do realize lower rates mean the economy isn’t doing so well, right?

43k in interest? If that’s your tax bracket , you shouldn’t be worried about rates lol.

If you can afford that, you shoulda been saving up for 5-10 years and buying a house in cash.

Scale down your lifestyle a bit and you won’t have to worry about 3-4 points in a rate swing

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I’m in the middle of building a house and really need the rates to drop.

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I'm actually on the opposite end. I sold my house a year ago, and am renting. Im going to buy a house this coming spring. I'm pulling for inventory to continue to rise and prices to drop.

Right now, inventory is high and houses are sitting on the market for extended periods. Prices are starting to drop. Right now, a lot of homeowners are holding their ground and not giving into the idea that their house is not worth what it was a year ago. Gradually, asking prices are coming down. I saw two similar houses next door to each other and one was priced 20% less than the other. That was a few months ago. The cheaper one sold in a few weeks and the more expensive one still hasn't come down and is still on the market...

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For years the rates were low even before covid so I’m not understanding why they are not going back to pre covid rates??

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Because rates aren't raised/lowered based on housing prices, they are raised/lowered to stimulate or temper economic activity. Along with that, the pre-COVID rates were historically low and led to a spike in real estate prices/values.

You raise rates or hold them steady when the economy is doing well, you lower them when the economy has a downturn. Currently, most economic indicators are strong so lowering rates would be to invite the return of increasing inflation.

Current thinking is that we will likely get a cut in September, but that's largely based on an expected slowdown which still hasn't materialized (the other part is that it's based on a lot of debt coming up for refinancing so lowering rates would mean lowering servicing costs on federal debt).

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Right now, inventory is high and houses are sitting on the market for extended periods. Prices are starting to drop. Right now, a lot of homeowners are holding their ground and not giving into the idea that their house is not worth what it was a year ago. Gradually, asking prices are coming down. I saw two similar houses next door to each other and one was priced 20% less than the other. That was a few months ago. The cheaper one sold in a few weeks and the more expensive one still hasn't come down and is still on the market...

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I have the feeling the housing market is going to be working this out for a long time. Those low pre-inflation rates allowed a LOT of people to get into homes they couldn't afford now (due to both the increases in value and interest rates), meaning they can't really afford to sell unless they have no other choice (like moving or going through bankruptcy) or they are willing to downsize considerably.