Powell Speaks at Jackson Hole
Powell Speaks at Jackson Hole: What Falling Interest Rates Could Mean for California’s Housing Market
(AP Photo/Manuel Balce Ceneta)
INTRO: A PIVOTAL MOMENT FOR HOUSING
Today’s big headline: Fed Chair Jerome Powell spoke at the Jackson Hole Economic Symposium in Wyoming. A place where the Federal Reserve gathers each year to signal future economic policy. His comments immediately moved the stock market, with major indices climbing more than 1%. But the question for us here in California is: what does this mean for housing?
For months, California’s market has been leaning toward a buyer’s market—with homes sitting longer, sellers offering incentives, and builders cutting deals. Buyers, however, remain hesitant. Powell’s comments could be the turning point that shifts that hesitation into action.
SECTION 1: WHAT POWELL SAID
According to Reuters, Powell hinted that rate cuts could come as soon as September 2025, citing slowing inflation but cautioning that risks remain. Markets reacted instantly. Why? Because when the Fed signals lower rates, borrowing gets cheaper—impacting everything from car loans, to credit cards, to mortgage rates.
SECTION 2: A LOOK BACK—RATES IN THE 1980s VS. TODAY
Here’s some perspective:
In the early 1980s, mortgage rates soared as high as 19% (Freddie Mac data).
Despite that, people still bought homes. Why? Because home prices were significantly lower relative to income.
Today, mortgage rates hover around 6.5%, which is much lower than the 80s, but home prices in California have climbed so high that affordability is the real challenge. So even with lower rates, if prices don’t adjust, the squeeze remains.
SECTION 3: CALIFORNIA—LEANING TOWARD A BUYER’S MARKET
Recent reports from The Hill and Business Insider show that many pandemic boomtowns are cooling, while parts of California are experiencing slower sales and rising inventory.
In Los Angeles, homes are taking longer to sell, price cuts are increasing, and builders are offering incentives. The balance of power is shifting—but cautiously.
SECTION 4: THE HOME DEPOT & JAMES HARDIE SIGNALS
Earlier this week, Reuters reported that Home Depot and Lowe’s saw sales fall 4%, signaling fewer renovations. And just yesterday, Bloomberg covered James Hardie’s 30% stock plunge, tied to weaker construction demand.
Put together, these stories highlight the same theme: people are hesitating to spend, whether it’s on a new home or fixing up an old one.
SECTION 5: WHAT THIS MEANS LOCALLY
For buyers in SoCal:
Incentives are growing—rate buydowns, closing cost credits, upgrades.
Inventory is ticking up—more choices, less competition.
For sellers:
Pricing strategically matters more than ever. Overpriced homes are sitting, even if upgraded.
Presentation is critical. Move-in-ready is what buyers are demanding—because they can’t afford renovations.
SECTION 6: THE BIG QUESTION
So here’s the real question: if Powell cuts rates, will buyers finally come back—or will affordability still hold them back?
👉Is this really about rates?
👉Or are California home prices just too high, even in a “buyer-leaning” market?
Only time will tell.
CONCLUSION: NATIONAL NEWS, LOCAL IMPACT
What happens in Wyoming doesn’t stay in Wyoming. Powell’s words at Jackson Hole ripple through the entire economyand especially the housing market. Whether you’re a buyer, seller, or just curious about where California’s real estate is headed, today’s news is a reminder that big policy decisions always show up on your block eventually.
📌Want the details behind the headlines? Follow along at Daily Real Estate News 4 You—where national news meets your neighborhood.
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