The Fluctuating Mortgage Rates in Today’s Market

It’s been a very interesting year in the real estate market. The Fed’s recent 50 bp cut was shocking. Housing prices haven’t come down, which is a big component that contributes to the inflation. The hurricane relief, a strong labor market, holiday shopping, and housing market activities after the elections, could potentially drive inflation higher in the next few months.

By the second quarter of 2025, we may start to see the numbers change. And if the Fed continues to cut rates or even if it decides to do nothing, with the spring housing market in the horizon, we could very well see an elevated inflation rate by the second quarter.

If you are looking to buy a home, Act Now! If you are thinking about selling, Don’t Wait Until The Spring!

Plan things out to list your home in the Spring as early as now rather than starting the process in Spring and listing in the Summer, since we don’t know what the Fed will do next year. It could cut another 25 bp, or they might have to reverse and raise the rate by 25 bp!

As reported on FreddieMac.com: Following the release of a stronger-than-expected September jobs report, the 30-year fixed rate mortgage saw the largest one-week increase since April. However, the rise in rates is largely due to shifts in expectations and not the underlying economy, which has been strong for most of the year. Although higher rates make affordability more challenging, it shows the economic strength that should continue to support the recovery of the housing market.

SEE CHART:

By the time you read this written article, the interest rates may have gone up again.

If you are thinking about buying or selling, and have questions about the market, feel free to schedule an appointment with me. It’s never too early or too late to consult with a professional realtor. Reach out anytime: 703.677.0709  / [email protected].