Oh you buyers are being very coy, aren’t you.
Go ahead – be very picky and patient these days about the homes for sale. Keep chuckling to yourself about how the inventory is fat and heavy with OPTs and prices seem to have nowhere to go but down.
Enjoy it while it lasts. It won’t be long.
Jerome Powell’s last day is May 15, 2026, and Trump will be riding him all the way to the end. The new Fed chief will be named in advance, and the bond market will probably get ahead of it too because Trump will be bellowing about how he can’t wait to drop rates back to 1%.
They don’t care about the amount of the federal debt amount – it’s the payments that are burdensome. Once the rates go down – boom, problem solved and Trump ends up being the hero who saved the federal budget.
And the housing market.
All we need is to get mortgage rates down into the 5s. Trump’s new guy should have those in place easily by the end of May, and – dare I say it – we could have mortgage rates between 4% to 5% as soon as next summer!! Wahoo!
There will still be a flood of inventory, but at least more buyers might step up.
Frenzy 2026, here we come!
This might keep the plates spinning at first. But, Trump was just given the green light by the Supreme Court to lay off gov workers. This along with much less money funneling through NGOs will make it hard to maintain sales numbers even with lower rates.
Hopefully Trump starts funding business startups to counteract the government headcount drops.
Yes there are two other caveats about much-lower rates:
1. Buyers may not lose their minds this time like they did during the pandemic.
2. Flood of inventory could/will temper the euphoria.
Fed drops rates to 1% there’s a better than likely chance the long-term rates rise.
Can I live in my frenzy fantasy for just a little longer….. 😆
The orange menace may get his new lackey to push rates down, but other than the forced overnight trade, no one will buy sub-inflation bonds.
who is lining up to buy mortgage backed bonds at 3%?
Agree and I’d settle for 4.5% mortgage rates.