I get asked if I think our industry puts too much emphasis on what the Federal Reserve is doing, and its being able to control inflation. In a word, my answer is yes. The Fed has a hand in inflation, but it isn’t the whole story. A President cuts off immigrants, so labor costs for picking lettuce or building a house go up. A ship carrying a load of raw materials from Africa is taken over by pirates, or gets stuck due to a port strike in a foreign nation. Tariffs are implemented, raising the prices since average consumers pay entirely for higher tariffs. Crops like corn or oats have a bad year. On and on. For the past two years, inflation has eclipsed everything else at the Fed. U.S. central bankers appear ready to cut interest rates in September amid monthly price numbers continuing to trend down toward the Fed’s 2 percent target and Chair Powell will likely flag a cut more explicitly after a policy meeting at the end of this month. The Fed signaling that interest rate cuts are approaching could help a homebuilding recovery that has been stuck in low gear due to high interest rates. For those out there hoping for lower mortgage rates, I would ask you what will lower rates do to housing prices, especially houses in the first-time home buyer sector? (Today’s podcast is found here and is sponsored by Calque. Calque provides a binding backup offer on a borrower’s departing residence, which empowers lenders to provide a bridge-like experience with easier qualification and less risk. Today’s episode features an interview with Figure’s Jackie Frommer on tappable home equity and products to help borrowers leverage it.)