The much-awaited Jackson Hole speech by Fed Chair, Jerome Powell concluded this week. Fed chair alluded to keeping rates high for longer and left the door open for raising rates based on future inflation data. Powells speech was no surprise. The market largely anticipated the rates to be kept steady. Fed watchers are assigning a probability of 45% that the rates will increase by another 25-basis points by the end of the year.
Powell reiterated that “Core goods inflation has fallen sharply, particularly for durable goods, as both tighter monetary policy and the slow unwinding of supply and demand dislocations are bringing it down”.
He also reiterated that the lagging effect of monetary policy should show through more fully over time.
Powell also confirmed that “Restrictive monetary policy has tightened financial conditions, supporting the expectation of below-trend growth.”
Chair Powell also reiterated that 2% is the target rate of inflation and the Fed is determined to bring the inflation rate down to 2%.
The Fed chair concluded by saying that we will keep at it until the job is done.
Mortgage Rates
30 Year Mortgage rate stood at 7.23 % and 15-year Mortgage rate stood at 6.55 %, highest in 22 years. According to Mortgage Bankers association Applications for purchase mortgages dropped to their lowest levels since 1995.
Market Stats
Collin County
Tarrant County Market Stats
Tip of the week – Seller Impersonation
The sale of real estate is one of the top transactions targeted by scammers. The latest scam affecting the public involves criminals impersonating a seller wanting to list a lot or vacant land.
Stay informed on the latest scams to know what to watch for
It’s always a good idea to use trusted title companies and attorneys for closing documents and funds.
Is this Japan’s decade? Is Buffet right to invest in Japan.
Great Chart by Edward Jones showing inverse correlation of Fed Funds rate and Inflation – econ 101.
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