SEPTEMBER 2024
REAL ESTATE NEWSLETTER
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Why You Might Regret Waiting For Better Rates After The Fed Cuts
August 2024 was a Seller's Market!
Mortgage rates are at their lowest level since March 2023 (6.35% for a 30-year fixed rate mortgage as of August 29th), and August 2024 reflected year-over-year increases in the number of active listings, new listings and pending sales. At the same time, the number of closed sales year-over-year was virtually unchanged, and median home prices rose in 20 of the 26 counties covered by NWMLS. The Federal Reserve is expected to further reduce interest rates in September, sending encouraging signals to potential buyers.
REAL ESTATE MARKET NEWS
Mortgage rates are influenced by the broader market for mortgage-backed securities (MBS), rather than directly controlled by the Federal Reserve. While the Fed can impact borrowing costs through changes to the federal funds rate, the performance of MBS, shaped by inflation expectations and investor demand, plays a more significant role. In anticipation of future Fed rate cuts, mortgage rates have already started to decline, as the market adjusts to expected changes. However, the potential impact of a Fed rate cut may be limited, as much of the rate decrease has already been factored in. As mortgage rates drop, experts expect increased buyer activity in the housing market, which may drive higher demand and intensify competition in the coming months.
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EVENTS AND HIGHLIGHTS OF SEPTEMBER
If you have any questions or comments you would like answered in next month's newsletter, email me at [email protected] and they will be included in the next market update.
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