Inside the Economy: Existing Home Sales, Fed Funds Rate, and the TCJA

This week on “Inside the Economy”, we delve into existing home sales, the current and projected federal funds rate, and the implications of the Tax Cuts and Jobs Act. Existing home sales are trending downward - will the recent interest rate changes improve affordability for home buyers? How might these rate decreases impact the refinance market? As we look ahead, the target for the federal funds rate is projected to be 3.5% by next summer. Is this the soft landing we’ve all been hoping for? Additionally, deficit spending currently stands at -6.5% of GDP. Is this sustainable long-term? If the Tax Cuts and Jobs Act were to sunset, what would the implications be for deficit spending? Tune in to learn more!

 

Key Takeaways:

• Core PCE Inflation at 2.7% (YOY)
• Crude Oil at $68.22 a barrel
• Federal Funds Rate at 5%