Good Economy, Bad Sentiment. Why?

It seems like every month the fed’s data is better than expected. This means that the economy is doing well. Why might this not feel so good though?

Good economic data means less likelihood for rate cuts. With higher for longer rates, this means that borrowing costs will continue to be higher.

Here’s the thing though, despite the fact that we don’t have any actual rate cuts, mortgage rates are creeping down with the hope/anticipation of incoming rate cuts.

The other factor as to why we might not feel great is that we felt so great all through COVID. I might argue that this is a bit of a hangover from COVID. Affordability during COVID was fantastic in comparison to what it is today.

Our market and us have been extraordinarily resilient. The only concern is that we’re actually being tested now as opposed to navigating easy times.