During the second quarterly installment of WFG’s 2024 Economic Outlook webinar featuring WFG Chairman and Founder Patrick Stone and noted economist Dr. Bill Conerly, both thought leaders shared their insights with the more than 1,000 participants, providing expert commentary on the current state of the U.S. and global economies and the residential and commercial real estate markets.

Dr. Conerly, who started the session, noted the overall slow growth of the U.S. economy, the downturn in real estate transactions over the past two years, and the Federal Reserve’s challenges in forecasting inflation and employment. He also addressed the Fed’s recent decision to maintain current interest rates and elaborated on their dual mandate of keeping employment high and inflation low. Conerly predicted cautious and gradual interest rate cuts through 2025, which he believes will gradually reduce mortgage rates below 6%.

Patrick Stone continued by refuting claims of an impending real estate crash and highlighted the significant factors affecting supply and demand in the housing market, such as resale rates, new construction, and generational home-buying needs. He expressed optimism that the real estate market will improve gradually through 2025, spurred by rate cuts and growing buyer confidence.

The Q&A session addressed various topics, including the impact of the presidential election on the economy, the Fed’s indicators for rate changes, and strategic advice for real estate professionals to navigate current market conditions. Dr. Conerly and Stone both stressed the gradual nature of economic recovery and the importance of staying informed and prepared. For a deeper dive, you can watch the full video, read the complete transcription, or check out the talking point summary.