Rate cut fallout and TikTok real estate

In this episode, hosts Patrick Dunne and Josh Alexander provide an in-depth analysis of the latest real estate trends in the DFW area following the recent 50 basis point rate cut by the Federal Reserve. They dive into the ramifications for mortgages, the implications of bond yields, and discuss a notable story about a Texas realtor innovatively using TikTok to find affordable apartments.

Key Highlights:

• Insights on the implications of the 50 basis point rate cut by the Federal Reserve.
• Discussion on the bond yields and their effect on mortgage rates.
• Examination of the housing affordability crisis in DFW.
• Exploration of the innovative use of TikTok by real estate agents for finding affordable housing.
• Analysis of the influence of the upcoming election on the real estate market.

Quotes:

• "I think it's great. She's found a real need and she's out there hustling and finding these apartments for people, making them aware of what's available with affordability being such a major issue." – Josh Alexander
• "What it does do is that SOFR futures curve, which is where the index these rates are tied to... your cost to hedge your floating interest rate costs through a rate cap or whatever is going to continue to get cheaper." – Josh Alexander
• "If you think about it from the perspective of a home builder, you see here now, Freddie's thing says that there's nearly a million for purchase home supply shortage." – Josh Alexander

References:

• "Dallas Morning News" article on the recent rate cuts
• Freddie Mac's housing shortage chart and analysis
• NBC DFW article on TikTok realtor Sarah Hamway helping renters find affordable apartments
• ALX Economic Indicators Dashboard