Chicago Fed President, Austin Goolsbee is one of the most Dovish Fed members this last year.

Here is his comment:

“You only want to be this tight on purpose if you’re trying to cool an overheating economy, and this is not what is overheating looks like.“

The Labor market is cooling by all measures. When asked about a 25bp or 50bp cut at the September 18th meeting, he pivoted stating that it doesn’t matter which they choose, what is more important is the longer term view of Policy.

Home Prices up again.

The Case Shiller Home Price Index, the gold standard for appreciation, showed home prices rose 0.2% in June. This is an all-time high. Prices are now up 5.4% year over year.

Rent concessions.

There has been a slew of multi-family apartments built or in the pipeline to be completed. This has drawn the vacancy rate up to its highest levels in four years.

Some of the concessions are a month or two months free rent and discounts on utilities. Quite a shift from two years ago.

Mortgage Rates continue to move in the right direction. We are anticipating a very busy Fall and Winter not just for refinances but for purchase transactions. The sellers are starting to realize that with rates lower, they can also get in the purchase market with the added benefit of adding their home to the pool.