Analysis
Pre Election Game Plan
In this episode
Quick analysis of the market reacting opposite to the data. And a game plan for buyers before and after the mid term elections.
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Show notes
CPI and PPI came in higher than expected. Usually when that happens rates move upward, but last week we saw a drop, and a large one at that, with rates finishing the week a quarter point lower than the previous week. Did investors finally see the value in purchasing Treasuries and MBS? We also map out a game plan for a very plausible scenario of rate dropping after the mid term elections. Blog post mapping it out.
The part worth repeating
This is just speculation, but if republicans hold on to control of Congress, and a resolution to the Iran conflict takes shape, there is a real possibility of rates moving downward. Buyers can take advantage of a lower purchase price now and a slightly lower rate after November 3rd.
Common questions
A question the episode answers
Will values skyrocket? Absolutely not, if this scenario plays out we could see a slow steady reduction in rates. The market needs to get back to balanced before values climb again, right now it’s a buyer’s market and we can foresee a more neutral market by next spring.
Mentioned in this episode
- Consumer Price Index, 10/14/2026
- Producer Price Index, 10/15/2026