Are you glad that you work in real estate?

[Mike Schorah]

SUMMARY OF FED DECISION (7/27): 

1. Raising interest rates by 75 basis points unanimously
2. Anticipates “ongoing increases” in rates
3. Affirmed plan to raise QT caps to $95B/month
4. Spending indicators “softened”

The Fed is sending us into a recession to control inflation.

Real estate will collapse despite a housing shortage.

Mortgage rates have more than doubled, new home buyers will be given smaller loans, sellers will be forced to lower prices to meet demand.

People will be losing jobs unable to meet mortgage payment too.

Free fall.

IHS just downgraded first quarter growth to -2.1% others are also going negative. The second quarter will be down by double digits.

Investors are gauging whether the U.S. Federal Reserve has reached the peak of its aggressiveness in hiking rates, with some saying they’re ready to up risky positions again.

They already said they wanted to raise rates to 3.5% by the end of 2022.

Federal Reserve’s plan is to raise rates and QT aggressively, crash the market, then step in and ease when inflation is down to prevent a 1929 type of depression.

Don’t fight the FED.