How The Fed's Decision To Hold Rates is Going To Affect Real Estate | How To with Gino Barbaro
Jake & Gino: Real Estate Investing & Multifamily
Jake & Gino
4.9 • 842 Ratings
🗓️ 26 March 2024
⏱️ 11 minutes
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| 0:00.0 | Hello and welcome. My name is Gino Barbera, one of the co-founders of Jake and Gino. |
| 0:04.7 | And in this important how to lesson this week, we're going to be discussing what is the Fed's |
| 0:10.5 | decision for holding interest rates mean to you? |
| 0:16.0 | It's so important Fed monetary policy and how it affects the economy. |
| 0:21.4 | But we're going to speak specifically to you, the investor. |
| 0:25.4 | I really love to start off with some facts. |
| 0:28.2 | Before I give my opinions, before I tell you what's going on to the market, |
| 0:31.5 | let's talk about some facts specifically. |
| 0:34.6 | The rate short term is between 5.5, 5.25 and 5.5%. That's the highest in 23 years. |
| 0:42.8 | It was held firm. Number two, they've raised short term rates 11 times. Number three, July of 23 |
| 0:52.9 | was the last time the rate was increased, little less than a year ago. |
| 0:58.5 | The fourth one, inflation is still too high for the Fed. |
| 1:03.4 | And I think for us as well, they're trying to tell us it's around 3%. |
| 1:06.9 | Great. |
| 1:07.5 | I don't believe that that number is 3%. |
| 1:10.5 | Last year, it was 9%. We're all getting hammered. I mean, |
| 1:13.6 | prices are still going up. And that's what they're afraid of. That's why they're caught. |
| 1:18.6 | They would have loved to drop rates sooner, but they can't because if they do, the economy will heat up |
| 1:26.4 | and inflation will rear its ugly head again. |
| 1:31.0 | And I don't know if this is a fact or not, but it is, but I'm going to put an asterisk beside it. |
| 1:36.9 | Job growth is strong, but is it just job growth or is it jobs that were lost during COVID |
| 1:43.2 | just coming back? I don't know. I like to |
... |
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