AvaTrade Release FOMC & Housing Market Special Report

AvaTrade Release FOMC & Housing Market Special Report

Ready to join our tribe?

We respect your email privacy

Subscribe now to recieve exclusive updates and offers!

Award-winning trading platform, AvaTrade yesterday published a special report that discusses the Federal Open Market Committee meeting and the implications this can have on the US Housing Market.

This week in the US was an especially interesting one financially and so for investors with some very important economic readings coming from the country. None less, than those were released as a result of an FOMC meeting – the results of which were released on Wednesday evening. At this point, the Federal Reserve would announce its interest rate decision. The importance of this was prudent to those looking to invest in real estate.

This is because those who are interested in such an investment would be loathed to carry on with these plans if there were rate hikes. While if the contrary occurred and interest was lowered, then this section of the market would see investment growth. All very basic stuff in the world of investment. However, due to the size of the real estate market, this has a significant ripple effect in other areas of investment. As such, whether or not you are an investor in the US Housing Market, there could be repercussions for you too.

Last year, despite various elements that may have hindered the economic factors, it transpired that the interest rate was cut by 3x. As a knock-on of this, consumer confidence saw a boost. This culminated in reading that occurred the day before the interest announcement that predicted a number of 128 against the previous reading of 126.5 Due to this, hopes for a rate cut were lowered and a non-reaction was predicted.

The Result

As it transpired, they were correct as the Fed left the rates unchanged from the previous year. This who that there is no expectation on behalf of investors that the Fed will lower interest rates year after year and that there is no autopilot policy in place. This is at odds though with the US President, who had previously seemed unimpressed by the situation.

However, according to AvaTrade, “Under the current situation, we do not need another three interest rate cuts, even one is more than enough to continue to support the housing market and this may happen only if the economy deteriorates”. As such, the lack of a cut symbolises the fact that the economy is actually in a steady situation currently and that this is no reason for investors to be concerned.

The move to not change anything though by the Fed and so only really illustrated there was no real clarity in regards to the situation. This has thus made it very hard to predict what might happen in the future. It is AvaTrades’ belief that they are merely waiting for the economic forecast scheduled for May in order to evaluate the issue and plan their next move. It is not possible to know for sure what will happen until this time next year.

Essentially, the takeaway is that everything is as it was – but this might not stay the same for long. With AvaTrade stating, “Given the geopolitical pressure, concerns of further trader wars, and the looming election,  I personally think that there is a higher chance that the Fed will cut the interest rate rather than increase it this year, and this should support the housing market provided everything else stays on track”.

It is an unpredictable time it seems but with some big US companies seeing good progress of late, it will be interesting to see the outcome of that report in May and then the Feds reaction to it.

Recently Similar News

Latest Guides

Latest News

Blockchain,Changelly,Cryptocurrency,Exchange Platforms

Changelly Adds Ardor, Ignis, and NXT to Changelly PRO

Changelly, the online cryptocurrency exchanges, has added three more tradable assets to their Changelly PRO platform. Changelly, the large online crypto exchange, has recently added an additional three cryptocurrencies to their Changelly PRO platform, Ardor, Ignis, and NXT. All three tokens developed by Jelurida will be tradable against BTC as ARDR/BTC, IGNIS/BTC, and NXT/BTC. Jelurida […]

6 November, 2020
Crypto Wallets,Exchange Platforms,Kraken,Ledger

Ledger Phishing Scam is Targeting Crypto Wallet Users

Ledger, the cryptocurrency wallet company, has been massively affected by a data breach and phishing scam. Ledger, the world renowned cryptocurrency hardware wallet producer, is facing a lot of problems with a data breach that is being used to target their customers. Kraken Intelligence, the intelligence arm of the Kraken cryptocurrency exchange, analyzes this data […]

5 November, 2020
Bitcoin,Blockchain,Cryptocurrency,Ethereum

Ethereum on Track to be First Blockchain To Process $1 Trillion In Yearly Transactions

Ethereum, the second largest cryptocurrency by market cap, is preparing to break the $1 trillion mark in yearly processing. Ethererum, the largest cryptocurrency behind Bitcoin, is on track to be the first blockchain to process over $1 trillion in transactions in a single year. Currently, the Ethereum network is processing more than double the amount […]

4 November, 2020
Binance,Blockchain,Cryptocurrency,Exchange Platforms

Binance is Giving Away $20,000 in Fifth Learn and Earn Series

Binance, the largest online cryptocurrency exchange, is hosting its fifth learn and earn series, this time with Orion Protocol. Binance, the worlds largest cryptocurrency exchange, will be hosting their 5th Learn and Earn campaign in collaboration with the Orion Protocol. In this campaign, Binance will be giving away $20,000 worth of ORN, the native cryptocurrency […]

3 November, 2020
Bitcoin,Blockchain,Cryptocurrency,Exchange Platforms

Bitcoin Monthly Prices Finishes at Second All-Time High

At the end of October, Bitcoin has registered its second highest closing price of all time. Bitcoin bulls continue to rejoice as Bitcoin closes at its second highest monthly price in the history of the digital currency. Bitcoin closed October with a price hovering right around $13,800, the second highest monthly price finish besides the […]

2 November, 2020
Cryptocurrency,Exchange Platforms

Cryptimi Announces Launch of Additional Platform for German Speaking Users

 At Cryptimi, we have announced the launch of our newest news platform in one of the largest languages globally, German. We are very pleased to announce the release of our world class Cryptimi platform in German! Now, all german speakers will be able to access all of the traditional media and features they would receive […]

27 October, 2020
Binance,Blockchain,CoinMarketCap,Cryptocurrency

CoinMarketCap Launches Latest Earn Campaign With Helium

CoinMarketCap, the largest online market cap aggregator, has launched their latest Learn and Earn campaign with Helium. CoinMarketCap has launched their latest iteration of their Learn and Earn program in partnership with Helium. Learn and Earn is a program launched by CoinMarketCap that allows cryptocurrency users to learn about new cryptocurrencies and earn some of […]

25 October, 2020
Binance,Bitcoin,Cryptocurrency,Exchange Platforms

You Can Now Spend BNB and BUSD With All Shopify Merchants

Shopify, the all-in-one online commerce website, now allows all of its merchants to accept Binance’s tokens BNB and BUSD via Alchemy Pay. Alchemy Pay, a worldwide cryptocurrency payment solution provider has worked with Binance and Shopify to integrate BNB and BUSD for payments to all Shopify merchants. Shopify is the worlds largest e-commerce platform with […]

23 October, 2020