The Rate-Cut Illusion Every time the Federal Reserve hints at cutting rates, markets and media outlets tend to celebrate, assuming cheaper mortgages, revived housing demand, and a stronger economy are right around the corner. But this narrative overlooks two key realities: (1) housing affordability is primarily being crushed by inflated home prices, not just borrowing costs, […]
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For decades, Washingtonians have believed a simple story: when the Federal Reserve cuts interest rates, mortgage costs fall, buyers rush in, and home prices hold steady. But leading economists Richard Werner and Robert Shiller challenge this belief, warning that rate cuts may not shield DC’s housing market from a looming correction. Werner, the economist who […]
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