The David Greene Show Mortgage Monday I Fed Cut Rates, Will it Help? I Episode 107
Jan 14, 2026
Christian Bachelder, an experienced loan officer and mortgage broker, joins to discuss the recent Fed rate cut and its implications for mortgage rates. They explore how this decision reflects concerns about a weak labor market and rising unemployment. The pair highlight the difference between the current situation and the 2010 crash, emphasizing regional job markets' influence on real estate demand. Investor strategies for navigating uncertainty and the Fed's limited options for future rate cuts are also examined, making it a must-listen for real estate investors.
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Fed Cuts Don’t Guarantee Lower Mortgages
- The Fed cutting the federal funds rate doesn't automatically lower mortgage rates because markets already price expectations into bond demand.
- Christian Bachelder explains mortgage rates can decouple from Fed moves due to bond market dynamics.
Rate Cuts Aim To Boost Money Velocity
- Lowering the Fed rate aims to increase the velocity of money to stimulate hiring and spending.
- Christian Bachelder and David Greene highlight that rate moves trade off inflation control for job support.
Labor Weakness Drove The Fed’s Decision
- The Fed cut rates partly to address softening in the labor market caused by company cost-cutting and tariffs.
- David links reduced corporate hiring and layoffs to the Fed's decision to ease policy.