Blog posted On October 04, 2024
The end of summer heralded a shift in the real estate market. The recent Fed rate cut announcement caused ripples throughout the industry, cutting the benchmark interest rate by 0.5%. Home buyers and real estate professionals alike have been celebrating as this announcement marked the first rate reduction in four years. After a languid summer and a dragging housing market, this economic shift has aligned perfectly with the changing season. Autumn has now been injected with buying energy, and potential home buyers may finally feel ready to leap off the sidelines into the golden leaves of homeowning.
How low will rates drop this season?
With the end of summer and these new announcements, economists are all arguing whether rates could fall below the 6% mark this season. Some are filled with tentative optimism, like Jason Obradovich, a chief investment officer. He believes that rates have the potential to dip into the 5% range this fall if “inflation continues to decrease and unemployment continues to rise.” Others are not so hopeful and possess a more realistic view. Economists like Sarah Alvarez believe that rates will drop but not below 6%. Alvarez expects to “see average 30-year fixed rates moving toward the 5s over the course of 2025.” It’s still a sign of positive change happening in the right direction, even if progress is slow.
What this means for buyers and sellers
As we head into fall, here are a few takeaways that home buyers and sellers should consider:
Buyers
Sellers
How can you financially prepare for this fall?
The nature of interest rates is fickle, but you can take advantage of smart financial options amidst these industry changes. Even if rates don’t drop to that ideal number you’re holding out for, economic predictions are indicting a downward shift over the next few years. We offer various loan products, refinancing options, and down payment assistance programs that can help you get ahead in this ever-changing market.
If you want to learn more about our programs and take advantage of these industry shifts, we’re happy to help!
Source: National Association of REALTORS®, CBS News
*Information provided on 10/3/2024.