Things Are About To Get Interesting. Prepare for Take-Off.

A blind pilot walks into a plane waving his walking stick. The passengers all look at each other in disbelief. The flight attendant gets on the PA and says, “Ladies and gentlemen, as you can see, the captain is legally blind, but rest assured, he is one of the best pilots in the world with over six thousand successful flights.”

Next, the co-pilot makes his way to the plane. He, too, is blind and uses his walking stick to make his way to the cabin. The flight attendant gets on the PA and says, “Ladies and gentlemen, as you can see, the co-pilot is also blind, but rest assured, he is the second-best pilot in the world with over five thousand successful flights.”

At this point, the plane begins to take off from the runway. As it gains speed, the passengers grow tenser. The plane keeps accelerating more and more, and as it approaches the end of the runway, it still hasn’t left the ground. The plane is approaching the end of the runway at high speed, and the passengers scream, “Oh my God, we’re all going to die!!”

Suddenly, the plane takes off and begins its ascent.

The pilot turns to the co-pilot and says, “The day they stop screaming, we are all in big trouble.”

This week, the Federal Reserve announced that they still anticipate three rate cuts in 2024. Many, not me, were projecting that they would announce that there would only be two rate cuts at today’s meeting. The prospect of a Fed rate cuts presents a double-edged sword. While they could alleviate financial burdens by lowering borrowing costs, their efficacy remains to be determined, given the magnitude of existing challenges.

As the election year unfolds, many factors are influencing the economic landscape, posing significant challenges for consumers and businesses. Among these are the potential Federal Reserve rate cuts, compounded by a severe housing inventory shortage and a weakened economy – all amidst substantial job losses across major industries.

In the housing market, the scarcity of available properties exacerbates affordability issues, potentially thwarting the ambitions of first-time buyers, even with lower interest rates. Moreover, the economic downturn intensifies these problems, with businesses grappling with diminished consumer spending and investment, triggering widespread job losses. Against this backdrop, the political landscape of an election year injects further uncertainty as potential policy shifts loom on the horizon.

So buckle up because in this economic journey, sometimes it’s not about what you see but how you navigate through uncertainty that matters most. Despite the unsighted backdrop, there are steps that the average consumer could take, and should take, to fortify their circumstances.

I encourage those of you who have not yet reached out to someone like myself to contact a financial professional you trust and review your finances, housing, and debts. This proactive approach allows individuals to incorporate upcoming life events into their short- and long-term financial plans, ensuring they are well-prepared for whatever economic twists and turns may lie ahead.

For me, this is an entirely complimentary analysis – I do this to help like-minded individuals better position themselves – and build relationships with those who can utilize my services in the future.

Shmuel Shayowitz (NMLS#19871) is President and Chief Lending Officer at Approved Funding, a privately held local mortgage banker and direct lender. Approved Funding is a mortgage company offering competitive interest rates as well as specialty niche programs on all types of Residential and Commercial properties. Shmuel has over 20 years of industry experience, including licenses and certifications as a certified mortgage underwriter, residential review appraiser, licensed real estate agent, and direct FHA specialized underwriter. He can be reached via email at Shmuel@approvedfunding.com.

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