Trust Through Transparency
Seasoned Broker 41+ yrs
I'm an UnTraditionalBroker.com in an 
alternative real estate marketing world.

9-20-24
See RecentSoldData.com
​My thoughts on the recent federal reserve discount rate. 

This is the rate the Fed loans money out to financial institutions. As of Sept. 19th 2024 it was 5.50%. They use the  rate to control the supply of money, which in turn affects the inflatiion and interest rates.



Many buyers and sellers think this is a good thing. It won't mean much at all because we are in a No Body's market, not a Sellers Market or a Buyers Market.

We don't have an interest rate problem, we have an inflation problem and when they lower rates the lag effect will hurt us.
 

Remember what I said
a week or so ago in RecentSoldData.com

In the 1960's rates were 6-7%

1971-72 interest rates were at 9%
Once Nixon took us off the Gold standard,
everything started getting real bad.
But, it gradually got to the Nixon decision
when President Johnson made sandwich
coins, no more real silver coins.
The lust for government spending
took off and Carter was stuck
with that and bad policy

1976-1978 interest 17-21%
Because we backed the dollar by
the faith of our government, not gold.
I watched the pain and misery on the
building industry faces as they struggled
during this period of time.

We got some of it under control with
Reagan but it takes both parties to
turn it into a bigger mess

1987 interest rates were at 10%

What the FED has done by dropping the rate is allowing the DC swamp to spend more money. What would you rather have, a normal market or more out of control inflationary spending economic choke hold on our ecomomy. Lower the rate and we're screwed.

I'm reviewing the MLS daily and
prices are dropping, but not enough to get us out of the no body's market. Your home has to be priced right in order to sell right. The longer you hold on during this No Body's Market, the more equity you'll be losing because prices are dropping, but people are still buying today, but not as many. 
As your listing agent, together we will figure out the most amount of money you'll receive, in the shortest amount of time with less hassle.
 HomeSearchingReport.com



If you sit on the market hoping someone is going to purchase your home, your home will be on the market three months or longer.

Let's get your home priced right and get it sold. You have a window of time to get as much equity as possible before prices drop even more, believe they are dropping.

You will see that the rates won't do much at all. If rates go down prices go up and people still can not afford to buy.

The real answer to all of this is to leave rates alone and see things go to normal.

HowIsellYourHome.com in a No Body's market.
How I Predict The Market, click

The Fed decreases the money supply by increasing the discount rate that they give to banks, by doing so it gives institutions less incentives to borrow money. It decreases the lenders ability to loan money. This may sound stupid coming from me, but its the inflation we need to tackle, not lowering rates. Lower number one below and leave rates alone. This will reduce inflation. Lower the rates number 4 and than number 1 goes up and the lag affect hits us later.