Fed Drops Rates-Now What?

Dated: September 19 2019

Views: 786

The evening before the FED dropped the rate .25% an influx of money was pushed into the markets in the form of QE. This was because of a liquidity problem. Short term rates had jumped to 10% and the FED had to get it back down to 2%. Which they did buy dropping 53 Billion into the market on Tuesday night and 75 Billion(or so) Wednesday. 

Why does this matter?  Well, because we are in a "GREAT" economy and this shows signs that there are issues that everyone seems to be ignoring. The economy worldwide is softening. Central banks worldwide are also dropping interest rates and many economies are beginning to show serious signs of slowing down. Give Germany a call and ask how their recession is coming along.

So maybe it has not affected housing locally. And maybe it will not. But there is one thing everyone needs to know and that is the World is VERY connected and small things half a world away can ripple world economies quickly.

As we wrap up this blog is should be noted that housing along the Front Range continues to be solid and demand is good. Sellers have continued to enjoy a selling season and buyers got to compete again this Summer. I will keep you updated on World Events and financial information as I wade through it. 

Patrick Muldoon

President

Blog author image

Patrick Muldoon

I have many interests and hobbies to supplement my busy career in real estate. Although I enjoy my work I also enjoy finding free time to enjoy the most important things in life. This includes being w....

Latest Blog Posts

Does Fall Bring a Fall in Housing??

The fresh scent of fall was in the air. The days were still hot, but the evenings were cooling off and you could sense a change in the weather. Colorado can really have some great fall weather when

Read More

August keeps the heat on with housing.

“As kids returned to school, and families finished out their summer trips, we felt a slight lull. Social media in the REALTOR® world was discussing a possible stall. Are showings down?

Read More

The 4th and More

While prepping for Independence Day, many REALTORS were also trying to predict what July’s real estate market would bring. Buyer fatigue was setting in, and REALTOR rigor mortis set in about 6

Read More

The Heat is On-Summertime!!

"June, the month that finally ushered in Summer!!!  June 20th struck the official date of summer, but the housing market had never left last summer. There was never a fall or winter for

Read More