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First of all, I hope you all have a very Merry Christmas and Happy Holidays to you and your loved ones!
The Fed recently stated they plan to make fewer rate cuts next year, but I think it’s just a cover. They’re likely trying to avoid repeating what happened in 2024, when they promised multiple cuts based on claims that the "market was so good" and "inflation was expected to cool." The truth is, they don’t really know what they’ll do in 2025, as their decisions will need to pivot based on the next administration and Congress.
What still puzzles me is their stance on inflation. They said they’d only make cuts after reaching 2% inflation, but inflation has gone up. So why are they making cuts at all?
As for mortgage interest rates, predictions suggest 2025 will remain above 6% through 2025. But again, that remains to be seen.
If you have any questions about the market in your area, feel free to reply to this email or call me.
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