The Federal Reserve on Wednesday signaled it could cut interest rates two more times this year, which would put the central bank on track to lower housing costs in a big win for Trump — even as his former adviser, Fed Governor Stephen Miran, argued for a more aggressive policy.
Though the Fed itself does not set mortgage rates, “our policy rate changes do tend to” affect them indirectly, Chair Jerome Powell said, after officials voted to cut interest rates by a quarter-point.
Still, it’s not a sure thing: Seven out of 19 officials penciled in no more cuts this year, and just one won’t be enough.
“Most analysts think it would have to be pretty big changes … to matter a lot for the housing sector,” Powell said. He added that “there’s a deeper problem … and that just is a pretty much nationwide housing shortage.”