Don’t forget travel agents

So let me get this straight. Rates were in the 3's and 2's for a few years when we weren't in a recession, but we needed to jack them up to 'avoid' a recession? So they jacked them up to 7% because of excessive federal spending and inflation. And when inflation came back under control, they made a couple 25 and 50 basis point cuts then halted with a slightly different explanation each time about avoiding the cuts.
So why now with inflation at stable lows, a stalled housing market, and pricing for even starter homes being out of reach, the Fed continues to artificially maintain a higher rate.
Sure, that makes all the sense in the world. :confused:
Look, we don't expect seeing 2% rates again, but 7% given the current patterns being artificially hiked doesn't make sense either. Something in the 5's would probably satisfy others and provide some needed stimulus to the RE markets. It's not about saving for a house or cheap money, but it is about affordability differences removing people from the market that isn't doing anyone any favors.

Only one variable
 

Inflation isn’t completely under control yet and isn’t the only factor used when considering the lending rate the Fed board sets. Unemployment, tariffs, GDP, dollar strength and many other factors are also important before the Fed votes to raise or lower interest rates. The manufacturing slowdown and layoffs tell a different story.

Rates are best left alone at least till the end of the year.

The only time rates were fiddled with so badly was the recession and covid. 7% isn't an artificially hiked rate. Prices are not going down, more have gone up and people are spending every like crazy. Watch what happens if rates are artificially depressed again. It's no wonder people don't bother saving money anymore, it pays peanuts for interest and their dollars are worth a lot less if they spend them later rather than sooner.

The fed has two mandates,
stable prices (minimal inflation is considered stable)
full employment. .

So the fed is currently waiting to see:

1) if when the labor market weakens, to lower interest rates.

2) if when inflation rises, to raise interest rates.

Currently the dollar has weakened 10%, thus increasing imported good prices 10%, and tariffs have increased imported goods an uncertain amount, depending upon from which company the goods were sourced, and when . .

but neither labor nor inflation has moved significantly, so the fed is waiting for which one moves and by how much to make their decision on which way to go!

You have to look at both viewpoints, not just the most favorable one to your desired outcome. . and the fed is just waiting to see which movement overpowers the other. .

good luck to us, we need it!

Your assessment is accurate and I agree... Thus, I was pointing that nothing indicates a drop in interest rates right now, it is not supposed to happen just for the "feel good rate when acquiring loans.

Reading United States Economic Forecast might give some people, who haven't an inkling how these decisions are made, some perspective.

just providing some rational for the potential for interest rates to move up or down. . and given the uncertainty and cloudiness of the poli-economic environment, it might be wait and see for quite awhile. .