The Federal Reserve Cuts Bank Rates, eXp and Real Report Earnings

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The Federal Reserve has Cut Bank Rates by a Quarter Percent!

The Federal Reserve has announced it has second consecutive interest rate cut, lowering the benchmark overnight borrowing rate by a quarter percentage point, or 25 basis points, to a target range of 4.50% to 4.75%. This Federal Reserve decision was made unanimously by the Federal Open Market Committee as part of its goal to balance employment support and inflation control.

While inflation has been easing, the Federal Reserve is adjusting its policy in response to a cooling labor market, with non-farm payrolls showing signs of slowdown. This Federal Reserve move signals a shift toward a more neutral stance as the economy continues to expand, though at a slower pace.

Markets responded positively, with stocks closing at record highs, while Treasury yields fell. Federal Reserve Chairman Jerome Powell emphasized that the Federal Reserve’s rate cuts are aimed at sustaining economic growth and making further progress on inflation.

As a non-partisan entity, the Federal Reserve’s decisions, including this one, are independent of the executive office and are solely focused on the health of the economy. The Federal Reserve’s action reflects its commitment to adjust policies as necessary, ensuring that both employment and inflation targets remain within manageable ranges. The Federal Reserve’s stance remains vigilant in supporting the economy’s resilience, reinforcing its role in overseeing monetary policy adjustments to match economic conditions.

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For more information check out this article What is the Federal Reserve?

eXp Q3: Revenue Up, Adjusted Income Rises

eXp World Holdings, Inc., ticker EXPI today announced its financial results for the third quarter of 2024, showcasing solid growth despite market challenges. Revenue for the quarter increased 2% year-over-year to $1.2 billion, driven by higher home sales prices and agent productivity. However, the company reported a net loss of $6.5 million, a decline from last year’s net income of $2.3 million, primarily due to an $18 million litigation contingency related to an ongoing antitrust settlement.

Excluding the litigation charge, eXp posted an adjusted net income of $7.8 million, up from $2.3 million in the same period last year. The company also saw a 15% year-over-year increase in adjusted EBITDA, reflecting improved business efficiencies and cost reductions.

Founder and CEO Glenn Sanford emphasized the company’s ongoing international expansion, with upcoming entries into Türkiye, Peru, and Egypt. 

As of September 30, 2024, the company’s cash position remained strong at $130.4 million, up from $120.4 million in the prior year. eXp also repurchased $35 million of its stock and declared a dividend of $0.05 per share for Q4 2024.

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Real Brokerage Q3: Revenue Soars, Agent Growth Up

And finally, The Real Brokerage Inc. ticker REAX reported strong third-quarter results for 2024, highlighting impressive growth and innovation despite market challenges. The company’s revenue rose 74% to $372.5 million, driven by a 78% increase in the value of real estate transactions, which reached $14.4 billion. The number of agents on the platform also grew by 79%, reaching nearly 22,500.

Despite reporting a net loss of $2.6 million, Real’s adjusted EBITDA grew 280% to $13.3 million. The company also repurchased $15.1 million in common stock and ended the quarter with $32 million in cash.

Both eXp and REAL have a profit share brokerage model in benefit of their agents which makes these reports important and substantial for the average agent who hang their license there.

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