BiggerPockets Daily Will Trump Get His Way With the Federal Reserve? Can Powell Be Fired?
11 snips
Apr 21, 2025 AI Snips
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Mortgage Rate Spike Slows Buyers
- Mortgage rates hit 6.81%, the highest since February, causing buyer demand to drop even as inventory rises sharply.
- Economic uncertainty and rate swings keep many buyers sidelined despite higher overall demand than last year.
ARM Popularity and Risks
- Adjustable-rate mortgages (ARMs) rose to nearly 10% of mortgage applications, offering lower initial rates closer to 6%.
- ARMs carry risk as rates adjust after initial periods, potentially causing much higher payments if rates rise later.
Trump-Fed Showdown Risks Market
- President Trump threatened to fire Federal Reserve Chair Jerome Powell over interest rate policy, escalating a political feud.
- Firing Powell is unlikely and could damage Fed credibility and market stability, as the Fed is designed to be independent.