What Does The Fed Rate Cut Mean For Mortgages?

In this podcast episode, hosts Jay Bacow and Jim Egan from Morgan Stanley explore the effects of the Federal Reserve's recent 50 basis point interest rate cut on the US housing and mortgage markets. They analyze how the lower rates make mortgages more appealing but highlight a disconnect between the Fed's decisions and actual mortgage rate changes. The hosts also discuss ongoing challenges in the housing market, like affordability and the "lock-in effect," which are causing a decline in purchase applications despite better rates. Their discussion suggests that while home sales may see modest growth, price increases are likely to slow down. They conclude by encouraging listeners to interact with their content.