Good Wednesday morning. Today at 2pm est we’ll learn that the Fed has cut rates by .25%, at least if you believe the CME Fed watch tool. Powell doesn’t typically surprise, but yes, the Fed should absolutely be cutting rates by .50% today. It’s the Powell presser at 2:30 est that we’ll paying close attention to, as we’ll learn how many of his Fed governors dissented from the final .25% cut. We’ll be surprised if that number isn’t 3…possibly 4 dissents. Essentially unprecedented. Slowly but surely, Powell is losing control of his Fed.

Even more interesting than what the Fed does is what’s taking place underneath the surface, especially with 30 year mortgage rates, which just hit their lowest levels in 3 years to 6.13%. Our call remains that mortgage rates will drop below 5% in 2026 and 4% by 2027.

Guess What Happens Next, as Mortgage Rates Plummet

That $34 trillion in home equity is going to come surging into the economy. The coming nosedive in mortgage rates is about to...