Piper Sandler is totally on board with Trump. Yeah, you heard me right. The whole hullabaloo about the Federal Reserve and interest rates — well, they agree the rates should drop. Strange bedfellows, huh? It’s like Trump and Jerome Powell are locked in this never-ending shouting match, and in the middle is Michael Kantrowitz just nodding along, like, “Yup, Trump’s got a point there.” Weird how the economy, with its bigwig businesses and deep-pocketed consumers, seems hunky-dory but still could use a rate cut.
Kantrowitz threw some historical tidbits our way, saying all these big economic booms usually kick off with housing getting a boost. But for that, rates need to sink a little. He paints this picture of a stronger economy and businesses fattening their earnings, if rates just take a little dive. The housing scene looks pretty bleak he says; too many homes on the market and prices just sagging away.
Meanwhile, everyone’s waiting on the edge of their seats for the Federal Open Market Committee’s June meeting minutes. And Trump, oh boy, he’s out there on Truth Social, ranting about rates being “AT LEAST 3 Points too high.” I can’t help but think of him as a cranky concertgoer yelling for the music to turn down. There’s even whisperings of him wanting a “shadow chair” to counter Powell. Wild, right? Yet, somehow the stock market stays zen, cruising near its peak, like, “What drama?”
Despite stocks looking peachy, Kantrowitz is convinced the economy’s stuck in a rut with high prices and glaring wealth divides. There’s this ghost of 2022’s inflation lingering around, scaring folks from cutting rates too soon. Like, we’re out of the COVID woods (thankfully!), but the fear of ballooning prices still spooks everybody.
Mortgage rates, they’ve been just chilling since April. Buyers are skittish, balking at homes that look way too expensive, with slim pickings anyway. Yet, out of nowhere, last week there was a spike in mortgage applications. Maybe there’s a glimmer of hope? Who knows. Anyway, I guess the rates saga continues…
