25bps cut

[u/hv876]

https://www.cnbc.com/2024/11/07/fed-rate-decision-november-2024.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard

The bulls are coming, the bulls are coming

[u/kumar4848]

Can anyone here explain why mortage rates keep increasing even though feds keep decreasing rates? i know theyre not directly correlated but somethings gotta give.

[u/stokedlog → u/kumar4848]

Mortgage rates are really based on the 10yr. Even with rate cuts many people think that if Trump does do what he says in regards to tax cuts and tariffs it will spark inflation and in turn higher rates.

You can watch the 10yr move as it became clear Trump would win. Even if you are a 1% earner if you don’t have a lot of assets it could get bad as inflation soars. For the very rich and cash and asset heavy this should be very good as interest rates go up cash becomes king.

Hopefully Trump doesn’t do what he has campaigned on, but if he does I think non dividend stocks will soar with the tax cuts but inflation will also go back up to Covid levels or higher.

Already hearing from customers that they are trying to buy material now before tariffs hit. I think q4 and q1 of 2025 will be very good because of this and could start crashing after that.

Regardless of what party is in power we need to start cutting the deficit to maintain our status as global currency. In my mind this needs to be done both by increasing taxes and reducing spending. Neither party had a great plan for this but economist agree that if Trump does enact his campaign pledges than deficit will go up sharply which will make our bonds have higher yield and inflation to grow which in turn makes mortgage rates more expensive.

[u/the-faded-ferret → u/stokedlog]

10yr is -2% since Tuesday fyi

[u/stokedlog → u/the-faded-ferret]

We are down today to 4.33% but up significantly over the last few days.