The Wait Is Over!
The Federal Reserve cut interest rates on Wednesday by half a percentage point. It was 1,650 days since the Federal Reserve last cut interest rates. And during this era of rising rates, we've seen:
The Federal Reserve cut interest rates on Wednesday by half a percentage point. It was 1,650 days since the Federal Reserve last cut interest rates. And during this era of rising rates, we've seen:
- Mortgage rates peaked at nearly 8% in October 2023
- Existing home sales plummet to 1995 levels
- Home affordability hit a 40-year low
So, when we got the news in mid-September that the Federal Reserve was cutting interest rates by 0.5%, we were elated. Not because this single cut will dramatically change the market overnight, but because the Federal Reserve is signaling that—
This is the beginning and not the end of rate cuts.
Yes, unfortunately, if you're looking to buy a home, lower mortgage rates will result in more buyers and increased competition. But it could also lead to something more important—
This is the beginning and not the end of rate cuts.
Yes, unfortunately, if you're looking to buy a home, lower mortgage rates will result in more buyers and increased competition. But it could also lead to something more important—
More homes hitting the market.
According to a recent Bankrate survey, only a fraction of homeowners feel comfortable selling their homes with mortgage rates at 6% or higher. However, the survey also revealed that more than a third of homeowners (35%) would be willing to sell their homes if mortgage rates dip below 6%.
More homes hitting the market should lead to a healthier and more stable real estate market, and buyers AND sellers can rejoice in that news.
As always, I'm here to keep you up-to-date on what's happening in the market, and I am happy to answer any questions.
P.S. One of my recent clients needed to sell their home but were worried that they would have a tough time finding a buyer with interest rates still above 6%. But after preparing and marketing their home, we got them $90,000 over the asking price and $40,000 above their "Wouldn't it be amazing?!" sales price in less than 13 days on the market. This was achieved with a very specific plan of action, which is most definitely what you'll need in the current market to attract buyers.
If you find yourself in the same situation give me a call!
PS. The Fed influences rates but doesn't set mortgage rates, which are determined by the bond market and lenders.
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👇💖 Check Out My Favorite Homes This Week 💖👇
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Also, I helped four clients find vendors to work on their homes this week! And I can help you, too. So if you're looking for people to do work on your home, please give me a call and let me connect you with one of my vetted vendors who can consult with you and give you a fair quote.
I've helped clients save money and navigate emergency repairs and tricky remodels. Give me a call so I can help you, too!