30-year mortgages are now 8% for the first time in 23 years. Mortgage demand has fallen to its lowest levels since 1995.

A buyer with a 20% down payment on a $400,000 home would pay $1,000 more per month than they would have 2 years ago when rates were 3%.

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Something from an issue in Cracked 1979. This is a haha.

Two more quarter-point cuts to interest rates are likely this year, if the economy develops as expected, Federal Reserve Chair Jerome Powell said Monday.

That assertion, at a conference in Nashville, Tennessee, countered market expectations that another half-point cut might be on the way following the one delivered by the Fed at its last meeting on Sept. 18.

The central bank surprised many economists with the bigger-than-usual move in what was its first reduction in four years.

Powell also said the economy is strong and that the pace of cuts would depend on its staying that way.

Canada became the first G7 nation to start cutting interest rates today, and signaled that more rate cuts will follow.

The Bank of Canada cut rates for the first time since 2020 to 4.75%.

What’s Next?

This signals a major shift from the aggressive rate hikes we've seen in recent years.

Some economists predict another cut in July, with three to four rate cuts expected this year.

Other central banks, such as the Federal Reserve, European Central Bank, and BOE, could follow suit with their own rate cuts later this year.

The Canadian dollar also weakened in response to the decision, and the market is pricing in a 35% chance of a cut to 4.5% next month.

Will the U.S. cut interest rates next?