The recent Federal Reserve rate cut sparks questions about the future of affordable housing and mortgage rates. As rates drop, will housing costs finally come down, or is there a longer road ahead? Discover what\u2019s really impacting mortgage rates and the economy, including Treasury yields, inflation risks, and government spending. Learn why maintaining wealth protection with gold and silver is more relevant than ever.<\/p>\n
<\/p>\n
CHAPTERS:<\/p>\n
00:00 \u2013 Introduction: Rate Cut and Housing Affordability<\/p>\n
00:35 \u2013 Why Mortgage Rates Aren\u2019t Falling<\/p>\n
01:39 \u2013 Inflation Risks and Economic Outlook<\/p>\n
02:14 \u2013 The Federal Reserve\u2019s Dilemma<\/p>\n
02:45 \u2013 Inflation\u2019s Slow Rise and Treasury Yields<\/p>\n
03:20 \u2013 Labor Market Concerns and Job Growth<\/p>\n
03:51 \u2013 The Role of Government Jobs in Job Numbers<\/p>\n
04:26 \u2013 The Bigger Picture: Systemic Flaws and National Debt<\/p>\n
05:26 \u2013 Why Gold and Silver Still Matter<\/p>\n
06:34 \u2013 The Future of the Dollar and Rate Cuts<\/p>\n
07:43 \u2013 Protecting Wealth Outside the System<\/p>\n
TRANSCRIPTION:<\/p>\n
00:00 – 00:35<\/b><\/p>\n
Affordable housing and 3% mortgage rates \u2014 that\u2019s what we\u2019ve been promised. Today, the Federal Reserve cut rates by 25 basis points. Is this the first step towards affordable housing and living, or is the road much longer ahead? Hi, everyone, I\u2019m Taylor Kenney with ITM Trading. Thank you so much for being here. Obviously, it\u2019s a huge week for news and there\u2019s a lot to get into. But the big question everyone is wondering is, when will we be able to afford the cost of living again, especially housing, which more than a third of Americans feel completely shut out of due to the rising cost of homes and mortgage rates?<\/p>\n
00:35 – 01:08<\/b><\/p>\n
If you\u2019ve been following the news, you know that President Trump has made a lot of promises around mortgage rates dropping. But in September, we saw something very interesting happening, a trend likely to continue. When the Fed cut rates by 50 basis points in September, many celebrated, expecting to see mortgage rates come down. But the opposite happened and could happen again \u2014 we could actually see mortgage rates go up. This isn\u2019t because they\u2019re responding to the Fed\u2019s decision to cut rates again today; it\u2019s because they\u2019re actually more closely following the Treasury yields.<\/p>\n
01:08 – 01:39<\/b><\/p>\n
I found an article here, \u201cIf the Fed is Cutting Rates, Why Aren\u2019t Mortgage Rates Falling?\u201d It says, \u201cMortgage rates aren\u2019t determined by the Fed. They\u2019re heavily influenced by Treasury yields, which go up and down based on economic expectations, and the outlook for growth is strong.\u201d Now, I don\u2019t have to tell you what happened in the stock market over the last 48 hours. People are celebrating. I\u2019m not here to ruin the party or rain on anyone\u2019s parade, because optimism and hope are terrific. But ultimately, we still have a long, long way to go.<\/p>\n
01:39 – 02:14<\/b><\/p>\n
There\u2019s a reason that these yields are going up. It\u2019s not just economic growth; it\u2019s not all peaches and cream. We\u2019re also expecting to see inflation rise. A lot of President Trump\u2019s promises have been around tax cuts, which could lead to deficit spending. Recently, he\u2019s talked about getting the debt under control, but even tariffs could result in additional inflation. Inflation could come roaring back, which is why there are now rumors about the Federal Reserve potentially slowing their rate cuts in the future.<\/p>\n
02:14 – 02:45<\/b><\/p>\n
We are in a really tricky spot here, and as much as I know most of us out there don\u2019t agree with the Federal Reserve\u2019s decisions 99% of the time, I\u2019ll be the first to admit they\u2019re in a tough spot, though it\u2019s a spot of their own making. Ultimately, if they continue to cut rates significantly, which President Trump has made clear he wants \u2014 when he left office, I believe rates were in the high twos, and he thought that was too high \u2014 so there\u2019s probably a lot of pressure to cut rates. But if they cut rates too fast, inflation will skyrocket.<\/p>\n
02:45 – 03:20<\/b><\/p>\n
Inflation, as a friendly reminder today, never disappeared; it never went away. It\u2019s just slowed in the rate it\u2019s rising. Inflation is still happening. Prices are still going up, albeit at a slower rate. They never stopped; they never went down. And more likely than not, we\u2019re never getting those prices back to what they were a couple of years ago. If anything, they\u2019re going to continue to go up, which is why bonds are reacting the way they are, and therefore, rates are responding the way they are.<\/p>\n
03:20 – 03:51<\/b><\/p>\n
On the other hand, if the Federal Reserve doesn\u2019t cut rates significantly, we also know there\u2019s significant risk in the labor market. That\u2019s a big concern for them. They see things slowing down, even as the media tries to make us believe that everything is fine and job numbers are normal. We know they\u2019re not. Last month, we had only 12,000 new jobs created in the entire United States. If you dig deeper, those jobs aren\u2019t coming from manufacturing, which lost over 40,000 jobs, or even from retail or the service sector. They\u2019re coming from government services.<\/p>\n
03:51 – 04:26<\/b><\/p>\n
These jobs are funded by us, the taxpayers. And if taxpayer dollars don\u2019t fund these job creations, what happens? Well, that\u2019s where the deficit continues to grow. So, we have all these government jobs being created. Maybe they were necessary, but I have a suspicion they weren\u2019t, and if they hadn\u2019t been created, we might have had negative job growth. How would that have looked going into an election? Once those jobs stop, we might see the real picture of our economy, not the smoke and mirrors they\u2019re giving us.<\/p>\n
04:26 – 05:26<\/b><\/p>\n
I\u2019ve said it before, and I\u2019ll say it again: People make a lot of noise about the Fed rate cuts, but when you zoom out and look at the big picture, we\u2019re still sitting on $36 trillion of national debt. We need oversight for banks running extreme risks with limited capital, and we have serious flaws in the system that need addressing. Some people say it\u2019s too late for that, which might be true. But one way or another, today\u2019s rate cut decision, while impactful, is small potatoes compared to the big picture.<\/p>\n
05:26 – 06:34<\/b><\/p>\n
I don\u2019t want to be negative, especially when many are optimistic about our economy. But the $36 trillion remains. We are still inside this system, with the same threats that were there last week, still here today. The reasons why people bought gold and silver last month, last year, are still here. Nothing has changed. People buy gold and silver to protect their wealth outside of the system \u2014 the same system we are still in today.<\/p>\n
06:34 – 07:43<\/b><\/p>\n
The dollar might temporarily increase in value, but that won\u2019t last. Rate cuts decrease the dollar\u2019s value. The dollar, based on faith and credit of the U.S. government, might feel stronger now, but it will decline. That\u2019s why those who hold true wealth ensure they have an insurance policy outside the system, because they know the threats are real.<\/p>\n
07:43 – 08:17<\/b><\/p>\n
If you don\u2019t have a strategy or want a second opinion, talk to one of our expert analysts. They\u2019re here to help people like you make sure you\u2019re protected. You can call the number below or click the link in the description. And as always, if you have any questions or thoughts, please leave them in the comments. I love to read everything you write. Thank you so much for being here. I\u2019m Taylor Kenney with ITM Trading, your trusted source for all things gold, silver, and lifelong wealth protection. Until next time.<\/p>\n
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