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Will the FED allow the real estate market to CRASH?
Will the FED allow the real estate market to CRASH? Make no mistake, if it does crash, its because the FED not only allowed it, but saw to it. This is extremely unlikely. More likely, the FED will ease as soon as they have a reasonable excuse to do it and possibly part of that could be buying more mortgage bonds to help stabilize mortgage rates. The big question mark is inflation. Should it continue to get worse, so will everything else including mortgage rates. If we've peaked on inflation, and it kind of seems like it, then you'll see bonds getting bought up (happened today again) and rates dropping in anticipation of a changing course. Lot to unpack here. Hope it helps! Links below
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LINKS:
https://www.cnbc.com/2022/07/04/stock-market-futures-open-to-close-news.html
https://mises.org/wire/rising-interest-rates-may-blow-federal-budget
https://www.cnbc.com/2022/06/30/housing-shortage-starts-easing-as-listings-surge-in-june.html
https://altos.re/r/cf071f91-3fd8-4451-9fc6-52f243001ddc?data=per_sqft_median
https://www.cnbc.com/2022/07/05/bonds-flash-recession-warning-light-as-key-part-of-the-yield-curve-inverts-again.html
https://www.cnbc.com/2022/07/05/oil-tumbles-more-than-8percent-breaks-below-100-as-recession-fears-mount.html
https://www.cnbc.com/2022/07/05/citi-says-oil-could-fall-to-65-what-it-would-mean-for-our-stocks.html
https://www.cnbc.com/2022/07/05/luxury-car-buyers-pay-more-than-ever-as-prices-and-loan-costs-rise.html
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