Rate cuts will end in disaster. Repeat of 2007 happening now.

Jerome Powell and the Fed just cut interest rates about 0.50%, or 50 basis points. Historically, these rate cuts tending to be the sign of a weakening economy, with a recession occurring during 10 of the last 14 fed rate cut cycles.

The Fed decided to cut interest rates due to a weakening labor market, with a surging unemployment level and declining job openings giving Powell impetus to cut rates. Moreover - demand in the housing market is scraping at the lowest levels in 30 years. And thus far - has not improved due to lower mortgage rates.
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[ReventureConsulting]

Do you want me to make the forward Housing Market demand index I'm developing at 11:23 public?

Could release it in a Google Sheet and update each week. Or do a free page on Reventure App tracking the figures.

Let me know in comments below.

[belljoe]

The average person has never been so poor. Millions of families are struggling financially as living expenses hit the highest levels in more than four decades. Over 60% of our country lives paycheck to paycheck and about 40% earns poverty wages. Even after working all their lives, more than a quarter of older people have no savings and many believe they will never be able to retire in dignity, while around 55% of elderly people try to survive on an income of less than 25, 000 a year.

[joaquindelrio]

Low interest rates does nothing when houses and car are so expensive

[istvanpraha]

Sick of the mainstream narrative that rates lowering will get me to buy a houses. Nope. I got a down payment saved but not handing over that much cash to greedy assholes who want what was a mansion price for a starter home a couple years ago, sellers have gone insane. Rates are not the issue

[HedgeFundCIO]

Honestly the most stunning statistic from this video is that 2007 was 17 years ago. I can’t believe it has been that long.

[Merichy]

The 9% who said yes to buying homes are real estate agents 😂

[jessedaly]

People are in massive debt and have spent all savings. No amount of rate cuts is going to fix that. Prices need to drop off a cliff to get sales up.

[craptacular]

The problem isnt that rates are too high. The problem is that prices are too high!

[CraigLloyd-fzns]

The belief that the Federal Reserve would stop raising interest rates was the driving force behind the entire economic chaos. What should we do now that we have a situation where interest rates are crashing? At this point, how would you suggest that I safely allocate $300k?

[southernyankee]

I sold my home 50, 000 below appraisal, so now I am sitting around trying to buy a home cash, but I will not buy a dump on a few acres for 699, 000. I bought a camper and I live in that at a long term campground for 500 per month. I can live in this camper for years if I have too, I just hope I don’t have to.

[bvswtwolves]

And today my company informed me that they’re doing layoffs tomorrow. Sad the gov is hiding the true data

[Carl_in_AZ]

Car repos are up, and car sales are down. Sounds like people have a debt issue.

[TheRichardsonReport]

I’m waiting on home prices to drop, but nothing has changed in two years. Until home prices drop I can’t afford a home even at a 4% rate.

[jimsaint]

Been screaming Crash Crash crash for years and years, sooner or later, you'll be right. Keep up the good work!!!

[JOEY-HUFF]

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

[jojopapa]

Builders have been offering 3.9% - 4.75% rate for almost 2 years. It didn't help any. 5.8% is normal average but will not help!!!

[ReynaDPerez]

Home prices are still overwhelmingly inflated.

[maiadazz]

Given the uncertain economic conditions and heightened global tensions, I'm considering investing over $800k in stocks. However, I'm uncertain about how to minimise potential risks.

[HodgeChris]

I remember in 2007 when I was working in real estate seeing people buy homes new from builders with the intention of selling before close of escrow to a new buyer for profit. The crash was so brutal and fast that I remember seeing a lot of these units foreclosed on with the builder plastic still on the carpet.

[sheabilladeau]

Interest rate is useless in Las Vegas. Prices are so high, even if the 30-year rate was 4% it wouldn't make a significant difference. The monthly payment is more influenced by the price when houses are 600k-800k for a nice home.