With the Federal Reserve moving away from its prior efforts to tighten money supply, the measure theoretically provides relief for many economic entities. Under basic economic principles, reduced costs of borrowing encourage capital expenditures, investments and other growth-centered activities. However, one of the more obvious beneficiaries is the housing market.
Earlier this year, the U.S. housing market inked the slowest month of May for existing-home sales since 2009, underscoring the harsh reality behind elevated mortgage rates and record prices. At the time, National Association of Realtors chief economist Lawrence Yun characterized the numbers as "very stable, but at the sluggish sales activity level."
