ProfessorWerner.org
Conventional wisdom says that when the Federal Reserve cuts interest rates, the housing market breathes a sigh of relief—mortgage rates fall, buyers rush in, and prices hold steady. But economist Richard Werner has spent decades challenging this assumption. His research shows that interest rates don’t lead the economy—they follow it. When growth slows, rates fall […]
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In a week marked by political theater and economic uncertainty, the Federal Reserve held interest rates steady at 4.25–4.50%—despite mounting pressure from President Trump, who made a headline-grabbing visit to the Fed’s headquarters, urging immediate cuts. Meanwhile, Trump’s sweeping tariffs are raising construction costs, and residential housing inventory is climbing fast. But instead of signaling […]
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In recent weeks, policymakers have teased what’s being called the “Big Beautiful Bill”—a sweeping legislative package that could reshape the American housing market. While the exact text hasn’t been released, early signals from lawmakers suggest the bill will focus on boosting housing supply, incentivizing development, and addressing affordability head-on. For real estate professionals, investors, and […]
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The trade winds shifted this morning as the U.S. and Japan announced a tariff deal trimming duties on autos and other goods. The headlines sound optimistic—tariffs on Japanese cars drop from 27.5% to 15%—but don’t get too excited just yet. That 15% “baseline” is still far higher than pre-trade-war levels, which means the pressure on […]
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The June inflation report added another wrinkle to the housing market. With consumer prices rising faster than expected, the Federal Reserve is unlikely to cut rates at its next meeting. That decision could keep mortgage rates higher for longer, slowing buyer demand, maintaining elevated inventory, and placing downward pressure on home prices. For buyers, this […]
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At a panel hosted by the European Central Bank in Sintra, Portugal, on July 1, 2025, Fed Chair Jerome Powell explained that the U.S. central bank had paused plans for further interest rate cuts due to President Trump’s sweeping tariff policy. This hesitation reflects their desire to fully measure how tariffs could influence inflation before […]
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This summer was supposed to bring a wave of momentum back to the real estate market—warmer weather, eager buyers, and maybe even some relief on mortgage rates. Instead, it’s brought bombs over Iran, rising oil prices, and a Federal Reserve that’s digging in its heels. So what happens now? Let’s break down how the dramatic […]
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How the Fed’s Rate Hold Impacts Housing Inventory and Prices On June 18, 2025, the Federal Reserve voted to hold interest rates steady at 4.25–4.50%, signaling caution in the face of persistent inflation and global trade uncertainty. While the Fed still projects two rate cuts later this year, today’s decision sends a clear message: they’re […]
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A recent report from Redfin made headlines with a bold claim: the U.S. housing market has nearly 500,000 more home sellers than buyers, marking the most significant imbalance in over a decade. The data, drawn from April 2025 MLS listings and Redfin’s internal buyer activity estimates, suggests a potential shift toward a buyer’s market. As […]
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As of May 2025, Boston and Cape Cod are seeing a notable shift in their real estate landscapes: rising inventory levels, softening buyer demand, and longer days on market. While more options might seem like a win for house hunters, the sudden surge in listings signals deeper uncertainty in the housing market, primarily tied to […]
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