Part 4/9:
Eisman predicts that the Federal Reserve will ultimately cut interest rates by a total of about 100 basis points—roughly three notches—before halting. He likens this approach to fine-tuning rather than drastic shifts, emphasizing that these small adjustments will support sectors like housing without causing excessive market upheaval.
He explains that many homeowners remain locked into low mortgage rates of around 3%, which limits the immediate surge in home sales. As a result, the housing market's response to these monetary policies will be modest, with some unlocking of existing homes but no radical boom. He suggests that the overall economic conditions are stable enough to allow for this gentle easing.