Fed Chair Jerome Powell's remarks indicated that the time for policy adjustment has come, paving the way for potential interest rate cuts. This could benefit both homebuyers and investors, suggesting that future mortgage rates are expected to decrease further, aligning with positive consumer sentiment in the market.
Orphe Divounguy, a senior economist at Zillow Home Loans, highlighted Powell’s statement as "a gift to investors and home shoppers alike," emphasizing how falling mortgage rates have made housing more affordable compared to earlier this year, thereby stimulating demand.
Lisa Sturtevant, chief economist for Bright MLS, pointed out that lower mortgage rates ease the transition for current homeowners looking to sell, since many hold mortgages at significantly lower rates than the current market, thus encouraging movement in the housing market.
Powell underscored that the current upward trend in unemployment and the slowdown in job growth are direct results of the Fed’s recent restrictive high-interest policies, indicating a need for rate cuts to foster economic growth.
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