So while we were sleeping, we were seeing the European bonds were selling off, which we opened up Monday morning to this bond selloff here in the United States, dropping the bond prices and raising our interest rates.
Powell was just in Switzerland trying to speak to the Switzerland bank and convince them that he's got everything under control. I'm gonna debate that right now. I think they were a little late to the party.
It's starting to become habitual that he's not really forecasting what's happening because he's looking at metrics that are passed. He's primarily looking at unemployment, which isn't a leading indicator. It's a lagging indicator. He's looking at inflation, which is also looking backward.
If you also look at the CPI numbers, the inflation numbers that we're comparing year-over-year inflation to, we're going to start seeing inflation slow down again second quarter next year. And that's because of comparison inflation rates right now we're very low last year, so we're replacing them with high numbers. We're replacing really low numbers and that's keeping inflation high. As those numbers increased last year, that comparison rate is now becoming more in line. We'll start to see that happening in October.
So if rates are at seven or above seven depending on, we are seeing a little bit of the bond market revert back from its extreme yesterday. It's like, oh wait a minute, that was the European market that set our markets on fire. It wasn't even anything in the United States. It was a sell-off of bonds in Europe that caused our bond market sell-off the next morning Monday morning. So Powell goes through all of these conversations to say during the last Fed meeting, "I'm going to define what I want to see in a housing correction." A housing correction includes two things from his perspective, those two things are increased housing supply and decreased housing demand. Come on, that was a given.
Listen to this complete episode, "How Does the Global Market Movement Influence the US Real Estate Market."
----more----
Nicole Rueth The Rueth Team Powered by OneTrust Home Loans 750 W Hampden Avenue, Suite 500 Englewood, CO 80110 303-214-6393 www.TheRuethTeam.com
Connect on social media:
Follow me on FB: https://www.facebook.com/theruethteam/
Twitter: https://twitter.com/nicolerueth
LinkedIn: https://www.linkedin.com/company/theruethteam/
YouTube Channel: https://www.youtube.com/channel/UCPMdb94tUNMMsUTgdWRMDKw
CalCon Mutual Mortgage LLC, dba OneTrust Home Loans is an Equal Housing Lender NMLS #46375; 3131 Camino Del Rio North Suite 1680, San Diego, CA 92108. Corporate phone (888) 488-3807. For more licensing information visit https://onetrusthomeloans.com/licensing-information. This information is to inform the real estate industry only and is not to be provided to consumers. All products are not available in all states. All options are not available on all programs. All programs are subject to borrower and property qualifications. Rates, terms, and conditions are subject to change without notice.
Earnest Money Guarantee is Your Secret Weapon Against All Cash Offers
DMAR May 2021 Taper Tantrums and Equity Cushions
How to Build Your Top 25 Brand Advocates
The First 90 Minutes of Your Four Hour Workday - Mind, Body, Heart and 30 for the Spirit
Strained Denver Housing Inventory, Understanding Headlines, and Cryptocurrency
Fact vs. Fiction - Housing Bubble - Colorado
Fact vs. Fiction - Home Loans
Fact vs. Fiction: Interest Rates and Long-term Investments
What is the purpose of a title company in a real estate transaction?
Questions to Ask Your Homeowner's Insurance Agent
Tight Inventory Is Behind Denver Real Estate Market Agony
What Consumers Need to Know About Appraisals
How to Raise Your Credit Score
Exploring 80113, 801212, 80103, 80119, 80222 Neighborhoods
Top 4 Things to Know Before an Inspection, How to Exit Forbearance
Today’s Real Estate Market – I know. I wonder. I’m boggled.
Ivy Zelman's Insights at the Fairway Economic and Housing Summit
December 2020 Real Estate Tips Round Up
Finding Your Niche Will Serve You and Your Clients Well
Let your home help you make money in your sleep.
Create your
podcast in
minutes
It is Free
The Commercial Edge: Unleash the Power of People
The emPOWERed Half Hour
Aligned Money Show
Dubai Property Podcast
IBKR Podcasts
The Ramsey Show
The Clark Howard Podcast