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James Dainard, co-founder of Intrust Funding, joins the On The Market podcast to unpack it all.
In a recent episode of On The Market, real estate experts Kathy Fettke, Henry Washington, and James Dainard sat down with host Dave Meyer to tackle one of the most talked-about questions in real estate right now: What would happen if we returned to ultra-low interest rates — and should we even want that?
As speculation swirls around a potential 1% federal funds rate — a proposal floated by former President Trump — investors are left to wonder: Would this actually help affordability, or would it unleash a new wave of volatility?
Let’s unpack the panel’s insights, dive deeper into the macroeconomic forces at play, and explore what this all means for real estate investors today.
💸 The Fed, Tariffs, and Rate Cuts: What’s the Connection?
The podcast kicks off with a critical discussion of Fed Chair Jerome Powell’s recent comments: interest rates would already be lower if not for concerns about inflation tied to new tariffs — particularly those on imported goods like Vietnamese construction materials.
While Powell’s cautious approach is frustrating to many in real estate, the panel agreed it’s a calculated move to avoid repeating past mistakes. Inflation data is lagging, labor markets are still strong, and premature cuts could limit the Fed’s tools in a future recession.
Key takeaway: For now, the Fed is prioritizing long-term stability over short-term relief.
🏦 What if Trump Gets His 1% Rate?
One of the episode’s biggest bombshells came from Trump’s public suggestion that interest rates should drop to 1% — a level not seen since early COVID-era emergency policies.
But what would that actually mean?
While a sub-2% federal funds rate might spark a short-term buying frenzy, the consequences could be severe:
- Spike in demand → higher home prices → renewed affordability crisis
- Increased inflation risk, especially if bond markets lose faith in Fed independence
- Widening wealth gap, as cash-rich investors snap up assets and the average buyer gets priced out
This scenario already played out post-2020: artificially low rates drove asset prices to unsustainable levels, leaving affordability worse than before.
🏘️ Stability Beats Spikes
All three investors agreed: the dream is not ultra-low rates — it’s predictability.
For real estate professionals, wild swings from 0% to 5.7% (and back again) make long-term planning nearly impossible. That’s why James and others advocate for a middle ground — rates in the 3–4% range with modest inflation.
It’s not flashy. But it works.
🗽 Rent Control and the Exodus from NYC?
Later in the episode, the panel tackled a new challenge: the fallout from New York City’s mayoral primary, which saw a socialist-leaning candidate advocating for:
- Rent freezes
- City-owned grocery stores
- 200,000 new rent-stabilized units
Real estate professionals are understandably rattled. Within 24 hours of the victory, Florida brokers were already fielding calls from concerned investors.
James weighed in with a harsh reality check:
The team warned that over-regulation could disincentivize new development, cause mom-and-pop landlords to sell at discounts, and ultimately lower the quality of available housing.
💰 All-Cash Buyers Are Dominating
James wrapped up the episode with a breakdown of where investor momentum actually is — and it’s not where you think.
In New York’s luxury market:
- 69% of Q2 purchases were all-cash
- Median home price hit $6.52M
- Sales over $4.5M rose by 18% YoY
Whether in Manhattan or markets like Newport Beach and Tacoma, savvy investors are zooming in on price bands where liquidity still exists.
🔍 So… Where Should You Focus Right Now?
Based on the podcast insights and our experience at Intrust Funding, here are five strategic moves investors should consider:
- Look for sweet spots in your market — either luxury with all-cash momentum or median-priced flips under $500K.
- Get local lending lined up with lenders who can move fast. <br>📎 Apply for a hard money loan now
- Avoid over-leveraging in hopes of a rate cut. Stick to deals that work in today’s market.
- Watch for new policy announcements that affect rent control, zoning, or rate changes.
- Keep cash liquid — if rates do drop, you’ll want to move fast on deals before prices shoot up again.
🧠 Intrust Insights: Real-World Takeaways from James Dainard
James’ perspective, shaped by years of flipping properties across the Puget Sound, reflects a broader truth: Markets are cyclical, volatile, and driven by forces far beyond any one person or policy.
That’s why at Intrust Funding, we continue to emphasize:
- Speed and flexibility
- Local knowledge
- Investor-aligned lending
Ready to take advantage of today’s shifting market conditions?
👉 Download our Hard Money Guide to learn how private lending can give you a competitive edge in any interest rate environment.
Or, if you’re already eyeing your next project…
📞 Call 425.272.9881 to speak with our team about fast, local funding.
In the latest On The Market episode, Intrust Funding’s James Dainard and fellow experts discuss the impact of a hypothetical 1% federal funds rate. While lower rates could boost affordability and stimulate investment in the short term, they may also reignite inflation, widen wealth gaps, and reduce the Fed’s flexibility to respond to future downturns. Investors are cautioned to prepare for volatility, focus on market segments with real momentum (like cash-heavy luxury or entry-level flips), and above all, prioritize predictability over short-term gains.
Ready to take advantage of today's shifting market conditions?
👉 Download our Hard Money Guide to learn how private lending can give you a competitive edge in any interest rate environment. Or, if you're already eyeing your next project… 📞 Call 425.272.9881 to speak with our team about fast, local funding.
