That is exactly what it means. Market rate is what you could borrow at today. Rate movement before the fed actually cuts rates is nothing more than the market pricing the cuts in.Rick Prieto wrote: ↑Aug 29, 2024market rates are not defined only by the current rate, they are defined on the expected rates. Just take a look at mortgage rates, they've been declining without the fed even making a single cut.
It doesn’t change the fact, unless you want to take on floating rate debt betting that rates continue to go down (only a fool would do so), that further rate relief needs to happen for the needle to really move.
