The Federal Reserve is prepared to pivot this week with either a .25% or .50% rate reduction, so what does this mean for you and the housing market? The immediate benefit is interest rates on credit cards, lines of credits, auto loans, and unsecured credit will also go down. As for mortgage rates, we have already seen a noticeable improvement in the last couple of months with a progressive decline. In fact, mortgage rates are down approximately 1.375% from this time last year. We could see additional decreases to mortgage rates as the Federal Reserve makes additional rate cuts, which are expected in 2025. If you have purchased your home in the last two years, now may be a good time to take advantage of a refinance to lower your monthly payment. We can help you evaluate your options and the right timing.
In the short term, buyers in this market will find more affordability with long term rates and sellers will find increasing buyer demand when they list their home. Buyers could quickly find themselves in a challenging market competing with multiple offers. We may see an uptick in listings in 2025 as mortgage rates continue to move lower and sellers become willing to give up their sub 4% mortgage rates. Keep in mind, those sellers are often buyers in the same market creating more buyer demand. Now is a good time to make a move before the market catches up with the pivot that will potentially start next week. Bear Flag is here to help you navigate these ever changing market conditions – talk soon! – Martin
View the September Newsletter below or visit the link here.
