Techdamentals
Oct 22, 10:45 PM
$LEN is a major U.S. homebuilder whose sales depend on buyer affordability, which is shaped over time by the same inflation and rate path at the center of this story.
The link between the Fed's overnight rate and the mortgage rate a buyer actually pays is real but loose and slow, since mortgages are priced off different market benchmarks, not the Fed rate directly.
Economists surveyed by Reuters do not expect inflation back to the Fed's 2% target until at least 2028, a multi-year backdrop that matters more to a builder like this one than any single Fed meeting.
Full explainer, plain English: https://youtu.be/AuAcF3-wbDc
Educational, not advice.
https://techdamentals.com/newsletter/why-is-the-fed-raising-rates-again?ref=st
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