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Market Snapshot July 28, 2021

Good Wednesday AM on this best day of the week,

Good insight from Dan Rawitch today.

Today is THE day! We will hear from the FED. Virtually nobody expects him to lower or raise rates. The anticipation and concern are over how he will deliver his decision. Will he talk about the damn dot plot that nobody should care about? Will he talk about the delta variant and concerns of how it may ripple through the economy? Does he still see inflation as being transitory and above all, have his tapering plans changed at all from last month? I can guess as to what most of these answers are but that is all it would be is a guess. Do you want to guess and float your loans through this crucial time? Remember that each time the FED has spoken following the last several rate announcements, the market has fallen hard and, in some cases, taken many days to recover. While the history does not always repeat the past, in the markets the probability is always higher that history will repeat itself. I remain bullish and my mid-term concerns about the economy have only grown stronger. I have a feeling the Fed may share the same concerns today. We will see!

Here is a great comment from Data Aggregator ATTOM on the state of housing and the imbalance between supply and demand (which is pushing prices higher).  

Those concerned about a housing bubble should pay heed to Yun’s belief that it will take years for the housing market’s supply to catch up with demand. Unless interest rates rise dramatically, dampening demand, which would shut down — or perhaps reverse — price appreciation, expect to see home prices continue to rise and first-time homebuyers increasingly locked out of homeownership opportunities.

Please remain safe and healthy, make today great!