[00:02] Dave Meyer. He is the CIO of BiggerPockets and also the host of the On the Market podcast. Dave, good morning. Good to see you. might some of the different policies that are going to be up and coming
[00:16] really affect the housing market and those expectations? What do we know about some of the changes that may be happening? It's important to remember two things here. First and foremost, Kevin Warsh, the new chairperson,
[00:28] does not unilaterally decide monetary policy. He is one of 12 voting members policy. He is one of 12 voting members on the FOMC, and in order for changes to happen at the Federal Reserve, consensus has to be created. And right now, that
[00:43] does not exist in terms of lowering rates. We had 11 of the 12 voters in the most recent meeting vote to keep the federal funds rate where it was. There was one voter who wanted to cut rates, but there were three who indicated that
[00:58] rates might actually need to go up in the near future. So, the direction of monetary policy is unclear even though we are getting a new Federal Reserve The second thing to remember, at least as it pertains to the housing market, is
[01:12] that the federal funds rate, which is the one interest rate that the Federal Reserve controls, is not directly correlated with mortgage rates. We've seen in recent years, even when the Fed cuts rates, mortgage rates might not
[01:25] move. Sometimes they actually go up. And I think that's the important thing for people to remember, that Fed policy does not directly translate to mortgage rates. Mortgage rates are much more closely correlated with what's going on
[01:38] closely correlated with what's going on in the bond market.