What did Chairman Powell say on Thursday?

Federal Reserve building | mortgage rate news

What did Fed Chairman Powell have to say?

In a speech on Thursday, Fed Chairman Jerome Powell didn’t provide any surprises. Powell reaffirmed his commitment to getting inflation to its 2% mandate. Powell didn’t state the specific path forward. He went out of his way not to indicate that he was leaning towards a push for higher interest rates.

In his prepared remarks, Powell stated, “Inflation is still too high, and a few months of good data are only the beginning of what it will take to build confidence that inflation is moving down sustainably toward our goal. We cannot yet know how long these lower readings will persist, or where inflation will settle over coming quarters.”

When asked if the current policy is too tight, Powell answered, “Does it feel like policy is too tight right now? I would have to say no.”

In addition to hearing from Powell on Thursday, we heard from most of the Fed officials this week, and they all expressed sentiment that the Fed may be patient in the next few months. Market experts expect the Fed to hold off on additional rate hikes in the short term, but there are still questions over when officials may start cutting rates.

How is the housing market in the Midpeninsula area?

While mortgage rates are elevated nationally, demand for housing in the Menlo Park and Palo Alto areas has picked up recently. Elyse Barca, a Menlo Park-based real estate agent for Compass real estate said, “Last fall was quiet, and spring was quieter than normal. This fall, people are adjusting to the market realities, including higher interest rates. The reality is, people need housing.”

Lower-cost or medium-priced homes in the area are among the most popular. The condo market has seen a surge in activity, and refurbished single-family homes in Mountain View, Los Altos, Atherton, and Redwood City have gained in popularity. Barca said, “In Menlo Park and Palo Alto, if it’s an (updated single-family) property between $2 million and $4 million, it is selling.”

When asked about the future of the Midpeninsula area’s housing market, Denis Welsh, a Los Altos-based real estate agent for Christie’s International Real Estate, said, “I don’t expect the fall market to slow down. I think the market is going to continue to move.”

How luxurious can rustic dwellings get?

If you’ve paid attention to Maine Cabin Masters on the Magnolia Network, you would know that little cabins in the woods can get pretty luxurious. The 10th season of the popular renovation show premieres on Monday, and this season may be the most opulent yet.

The show is known for renovating a variety of dwellings, but master builder Chase Morrill goes out of his way to show cabin owners how they can get the most out of their homes.

The most important piece of advice Morrill has for cabin owners? When asked, Morrill said, “The biggest thing is it’s meant to be loved. It’s not a fine home. It’s a place where you go and relax, not have to worry about scratching up the floors if you have dogs. You want a place that you can go and have fun and make memories. Make it work and hold on to it as long as possible.”

If you either own a cabin or want to get into one, make sure to check out Maine Cabin Masters at 9 PM ET on Monday on the Magnolia Network.

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