09.15.24

Gary Cohn Says Fed Rate Cuts Already Priced Into Mortgage Market

by: Bloomberg

Gary Cohn, who served as chief economic adviser to former President Donald Trump, suggests the Federal Reserve’s rate cuts this week won’t provide much relief to homebuyers facing high borrowing costs. “I do not see a major impact to the mortgage market or credit-card financing or anything else by the Fed starting to drop rates this week,” says Cohn. The central bank is widely predicted to begin easing rates in September, as the economy begins showing signs of weakness. Measures of inflation have cooled, but home prices are still more than many Americans can afford, especially with high borrowing costs. The average for a 30-year, fixed loan is currently 6.2%, down from 6.35% a week earlier.

Read the full article on Bloomberg