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September is around the corner and the markets, both real estate and the stock market heard what they wanted from Mr. Powell last Friday during his speech at Jackson Hole. He mentioned The Fed needing to make an adjustment to their framework, and they may need to be more proactive in September with a rate cut to combat weakening employment numbers. This is in the face of inflation that has not hit their 2% target goal, however inflation can be combatted with raising rates again, yet employment can get out of control quickly and be devastating to a population and the economy. The chances of a cut are back up to 80% since the speech, however there is more economic data to be dropped between now and the next FOMC meeting in September. We'll need to see how those numbers look and if the 10yr yield can hold it's downtrend (chart below with my own personal squiggles).
Mortgage rates are remaining near 10-month lows which is really nice to see, but back to school action has the market still in a slump for sellers. I am still very much an advocate for any active buyers to be hunting right now as homes sit.
See you in September.
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