However, the economy and the job market may be too strong to warrant steep rate cuts in the near term.
"September's strong employment report and upward revisions in July and August murdered the hard-landing scenario," Yardeni said in a note to clients this week.
The 30-year mortgage rate has crept higher, not lower, since the Fed delivered its big rate cut.
As the economy reaccelerates, inflation could become a problem again, solidifying a higher for longer interest rate outlook that many had abandoned after the Fed's jumbo rate cut last month.
Advertisement"With benchmark interest rates coming down, most prospective borrowers don't feel relieved of high borrowing costs," according to Mark Hamrick, a senior economic analyst at Bankrate.
Persons:
—, Ed Yardeni, Yardeni, Megan Horneman, Steven Blitz, Mark Hamrick
Organizations:
Service, Federal Reserve, Yardeni, Fed, Verdence Capital Advisors, TS Lombard, Philadelphia Fed