Fed Won't Help Save Housing
....it's clear now
The Federal Reserve isn’t interested in saving the housing market from an affordability crisis.
In fact, they think prices are too high.
“Seven of the 19 participants indicated they wanted no cuts this year, up from four in March.”
The committee says, “the economy grew at a ‘solid pace’ with ‘low’ unemployment and ‘somewhat elevated’ inflation.”
Is Wall Street completely disconnected from Main Street?
Why, yes. Yes it is.
The buyers for Wall Street’s stocks are the top 10% of households (rich people) who control 88% of all stocks. These households are frankly, institutions, themselves.
Main Street (retail buyers, i.e. normal middle class folks) buys properties to live in.
93-94% of single family homes are owned by owner occupants or “mom an pops”.
Only 3-4% of properties are owned by institutional investors.
Main Street never gets directly bailed out. It’s always trickle down.
Key Facts From Today’s Meeting:
Fed Leaves Rates Unchanged
FOMC Median Forecast Still Shows 50 BPS Of Rate Cuts in 2025
Fed Holds Benchmark Rate In 4.25%-4.5% Target Range
Fed Lowers 2025 GDP Estimate to 1.4%, Lifts Inflation to 3%
So Main Street is getting stuck holding the bag, with no immediate help for the affordability crisis. Meanwhile the consumer is getting crushed with little savings and job layoffs, FHA/VA foreclosures are en-route, and the student loan crisis is likely to compound in late summer/early fall with the Big Beautiful Bill passing.
The first time homebuyer median age is now a whopping 38 years old. Credit card and auto loan delinquencies are moving up, and listing inventory is skyrocketing.
Yada, yada… watch the video to find out more and get the inside scoop.
jon@movewithmomentum.com
w: thinkbigquestioneverything.com
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