The Fed Just Told Broward Buyers Not to Bet on a Rate Cut

A lot of the buyers I talk to are holding out for one thing: mortgage rates coming down. It is the most common reason I hear for staying on the sidelines, from Davie to Weston to everywhere in between. Last week gave that plan a pretty direct answer, and it was not the one most people are hoping for.

Federal Reserve Chair Kevin Warsh gave his first major speech at the Fed's annual conference in Jackson Hole, Wyoming on August 28. Warsh, who took over from Jerome Powell back in May, said inflation is still too high and that current interest rates might not even be restrictive enough to bring it back to the Fed's 2% target. That is a firmer message than he had sent before, and it moved bond markets the same day.

The numbers behind that statement are worth knowing. Inflation by the Fed's preferred measure came in at 3.7% in July. Warsh pointed out that 54% of the goods and services tracked by the government saw price increases of 3% or more over the past year. That is down from the pandemic peak, but still well above the 32% average from the two decades before COVID. He also pointed to strong business investment in AI infrastructure and steady consumer spending, both signs the economy is not exactly begging for lower rates right now.

Most analysts still expect the Fed to hold rates steady at its September 15-16 meeting. But Wall Street investors are now betting the central bank raises rates by December, not cuts them, according to futures tracked by CME FedWatch. The 30-year Treasury bond hit its highest level in 19 years last week, part of why Treasury Secretary Scott Bessent has been buying back bonds to try to push yields lower.

Here in Broward, the average 30-year mortgage rate sits at 6.66%, right about where it was a month ago and just under the 6.69% high for the year. If you have been telling yourself you will buy once rates drop, this is worth sitting with for a minute. The Fed chair just said the next move might go the other way.

In 23 years of doing this, through four different rate cycles, I have watched plenty of buyers wait for a signal that never came, or that came too late to matter. Waiting for rates to drop is a bet on the Fed. It is not a plan. A financing plan built around your own numbers, your monthly payment, your timeline, and what a home is actually worth to you, holds up regardless of what the Fed does next.

None of this means you should rush into something that does not make sense for you. It means the decision should start with your numbers instead of a forecast none of us control. If you want to run those numbers together and figure out what actually makes sense for your situation, reach out any time.

Roger Averbuj, Broker | Prestige Heritage Realty | (954) 663-8461

Source: Fed Chair Warsh signals rate hikes may be needed with inflation still elevated, Florida Realtors / AP, Aug. 28, 2026