BiggerPockets Daily
Will Trump Get His Way With the Federal Reserve? Can Powell Be Fired?
Apr 21, 2025
14:30
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Quick takeaways
- Rising mortgage rates have led to a notable increase in adjustable-rate mortgages, posing potential risks reminiscent of the subprime crisis.
- Political tensions surrounding Federal Reserve Chair Jerome Powell may influence monetary policy, impacting the housing market's stability and direction.
Deep dives
Mortgage Rates and Market Dynamics
Mortgage rates have surged to an average of 6.81%, the highest since February, leading to a significant drop in mortgage applications by 8.5%. Despite a year-on-year increase in demand for homes by 13%, there is 30% more active inventory available than last year. This disparity indicates that while there are more homes for buyers to purchase, economic uncertainty surrounding mortgage rates is causing many potential buyers to hesitate. The ongoing volatility in the stock market further complicates buyers' decisions, leading them to be cautious about entering an unpredictable market.
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