Ken McElroy Show

The Fed Changed the Rules Again! Here’s What It Means for Housing

10 snips
Dec 26, 2025
The discussion dives into the Fed's ongoing strategies, contrasting them with traditional quantitative easing. As mortgage rates fluctuate, the duo explores how Fed actions could boost housing demand and impact inflation metrics. They highlight the significance of local market dynamics and the emerging trend of parents buying homes for their children, shaping future homeownership. Insights on AI's influence on the job market and tactical advice for buyers and sellers round out a fascinating look at the evolving housing landscape.
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INSIGHT

Temporary Liquidity Moves Still Change Markets

  • The Fed frames current purchases as temporary liquidity support, not intent to stimulate.
  • But temporary Treasury purchases still influence rates and blur the line between maintaining and stimulating the system.
INSIGHT

Analysts See A Possible Big Rate Drop In 2026

  • Some respected reports predict the fed funds rate could fall dramatically next year, perhaps as low as 2%.
  • If true, that scenario would compress cap rates and create significant asset demand.
INSIGHT

Policy Prioritizes System Stability Over Purchasing Power

  • The Fed is choosing to preserve the financial system even if that means accepting higher inflation.
  • That choice favors assets over cash because inflation erodes savings while assets often appreciate with inflation.
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