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  • Rate cuts may not happen as soon as we hoped and recently reduced home listings

    Saturday, January 20, 2024   /   by Amy Brown

    Rate cuts may not happen as soon as we hoped and recently reduced home listings

    Fed vs. Data: Mixed Signals Spark Confusion on Rate Cut Timing

    The debate over future Fed policy continues to dominate market headlines. This week, retail sales, industrial production, and housing stats exceeded expectations, while initial jobless claims came in softer than anticipated. The data over the last couple of weeks is beginning to depict an economy that remains robust. The question facing investors now is if the economy is as strong as the data suggests, why does the Fed need to cut rates early, as the market has been pricing in?

    Throughout the entire tightening cycle, the Fed has emphasized two key factors: achieving its 2% inflation target and data dependency. Once again, Fed Governor Waller, on the speaking circuit this week, reiterated that while he foresees some rate cuts in 2024, he does not anticipate them until much later in the year. Despite the market paring down some of its bets on a quarter-point cut in March they are still priced in at around 50% as we write this.

    Some market participants speculate that the Fed might consider an early cut to avoid taking policy action during the US presidential election, thereby preserving its political independence from being questioned. With plenty of data still to be released before the March meeting, the debate on rate cuts is far from over.

    Great homes with recently reduced prices

    76 Distant View Dr. Asheville
    4 bdr/3 baths, 2950 sf
    -8% to $999,999
    Incredible views

    91 Spooks Branch Rd., Asheville
    3 bdr/2bath, 2055 sf
    -1% to $669,500
    Quirky, great location in Beaverdam valley

    27 Benfield Rd., Weaverville
    3 bdr/2 baths, 1957 sf
    -3% to $465,000
    Private mountain cabin on 3 acres with a stream

    24 Macallan Ln., Asheville
    4 bdr/4 baths, 3013 sf
    -3% to $899,000
    Modern Chunns Cove townhouse with garage

    7 Apple Ln., Asheville
    4 bdr/3 baths, 1736 sf
    -2% to $490,000
    Spacious master suite

    *A little note from our reliable lending partner, Kim Winters with Movement Mortgage...

    In the video that she distributed 2 days ago that I shared on our facebook page, she stated "For every 1/4 of a point that the interest rate drops 500,000 more buyers enter the marketplace nationwide. That increases the competition thus increasing home prices. Waiting is not your best strategy."

    I found that to be pretty interesting and noteworthy so I wanted to share it.

    Please give me a call with questions or showing requests! I am here all weekend!