February Housing Market Update

The winter season is officially upon us, and Northern Virginia has already given us our fair share of snow and near-freezing temperatures. As the days slowly get longer and the remaining snow melts, we hope you, your family, and your loved ones are staying warm.

Here at 5 Elements Real Estate Advisors, we are excited to continue supporting you through the winter housing market. Read on for spring exclusive listings, what’s next for mortgage rates, and insight into the perfect time to move.

When is the Perfect Time to Move?

It’s easy to get caught up in the idea of waiting for the perfect moment to make your move – especially in today’s market. Maybe you’re holding out and hoping mortgage rates will drop, or that home prices will fall. But here’s what you need to realize: trying to time the market rarely works. And here’s why…. CLICK HERE TO READ MORE

What’s Next for Mortgage Rates?

Now that 2025 is officially underway, expert forecasts are available for 2025 30-year fixed mortgage rates. An average of nine top sources show rates are expected to settle in the 6-6.5% range by the end of the year. However, it is still important to brace for some volatility along the way. See below for additional insight:

Key Takeaways:

• Mortgage rates are projected to come down slightly and settle around 6-6.5%.
• Home prices are forecast to rise in most areas. The exact amount is dependent on local area, but overall prices are projected to go up at a more sustainable pace.
• The number of homes for sale is expected to grow even more this year. This should give buyers more options for their search.

How Does the Federal Reserve Factor Into This Data?

You may have noticed that the 10-year U.S. Treasury yields increased since the Fed started cutting rates. The 10-year Treasure note serves as a benchmark for the 30-year mortgage rate. This is not the first time this unusual situation has occurred; however, the last was in early 2023 when the Federal Fund Rate was 4.75% and the 10-year Treasury Bond Rate was 3.40%. As of January 2025, the Federal Fund Rate is 4.5% and the 10-year Treasury Bond Rate is 4.6%.

As you can see, the Fed rate has lowered to around the same level as the same time in 2023, but the 10-year Treasury Bond Rate is now higher.

So, What Does This All Mean?

A decision on buying or selling a property should not be made based on the assumption that the home mortgage rate will be lower if the Fed cuts rates again. First of all, the Fed might not cut rates too much in 2025, second, even if the Fed further cuts the Reserve Fund rate, the home mortgage rate might not go downward as much as expected, just like the current situation. A decision on the timing of buying or selling should not solely rely on expectations of the interest rates, but more on individual lifestyle and financial conditions.

Interested in learning more about market predictions for 2025? Click the button below to view the full year-end report.

CLICK HERE TO VIEW
THE FULL YEAR-END REPORT

Reach out for a free, no-obligation consult at 703.677.0709 / [email protected].

Spring Exclusive Listings

Explore my upcoming exclusive listings coming this Spring.

McLean | Single-Family Home
4 Beds, 3.5 Baths, nearly 3,000 SQFT
This single-family home, in the Langley High School school district, is fully renovated with a gourmet kitchen. The finished basement boasts one bedroom, a full bathroom, and two exits to the backyard. No HOA.

McLean | Two-Level Townhouse
Looking for a fully renovated home in the McLean school district? Look no further than this two-level, fully renovated townhouse. Coming soon for $550,000.

Gaithersburg, MD | Two-Level Condo
3 Beds, 2.5 Baths, nearly 2,800 SQFT
This two-level, large condo in a highly desirable community in Gaithersburg, MD, features a cozy gas fireplace and a convenient office just off the living room. Enjoy ample parking with a one-car garage and one-car driveway parking. Low condo fee.

Interested in learning more? Reach out:  703.677.0709 / [email protected].