Why Interest Rates Just Dropped Down Into The 5"s... Episode 260

Why Interest Rates Just Dropped Down Into The 5's... ...it wasn't due to the Fed lowering the rate The President ordered the purchase of $2 Billion in bonds and it was the catalyst for interest rates to drop 22 basis points almost immediately The Federal Housing Finance Agency leader Bill Pulte posted "We are on it" and will be working Fannie Mae and Freddie Mac to execute the plan financial markets are buzzing and so are home buyers as the average mortgage rate hit 5.99% on January 9th affordability just increased monthly payments went down sidelined home buyers are jumping back into the market This also raises the possibility of a rate drop by the Fed at their meeting on January 27-28 given that the Fed has dropped rates by .25% at 3 consecutive meetings there has been talk of pausing rates drops for this meeting to re-evaluate things with regard to things such as GDP and inflation there will not be another Fed Meeting until March 17-18 so this meeting is a big determiner of the rates available to home buyers throughout the 1st quarter of 2026 and tax season keeping in mind that the current Fed Chair Jerome Powell's term will be ending on May 15th there will be a lot of attention on the hot topic of interest rates tune in to today's show for all of the details

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