The Federal Reserve (Fed) announced a major rate cut this week, and we know you are wondering: "what does this mean for Buyers and Sellers"?
So, what happened?
On September 18, 2024, the Fed announced a 50 basis point (0.50%) rate that lowered the federal funds rate to a range of 4.75% to 5%. This cut was more aggressive than many predicted. Plus, the Fed Chair indicated that rates should continue to drop over the next 1-2 years.
However, it's important to distinguish that the Fed doesn't directly set mortgage rates. The federal funds rate heavily influences mortgage rates. And that is why this is important to Buyers and Sellers!
We optimistically wait to see how mortgage rates will respond and where they will stabilize.
What does this means for our clients?
Buyers who Bought 2022-2024: With lower mortgage rates, you can consider reaping the benefits of "marrying the house, and dating the interest rate". We recommend starting a discussion with your financing professional and considering when refinancing is best for you.
Buyers in the Market Now: Lower rates means more affordability, and more buyers entering the market because of it. You might consider re-calculating your monthly costs with new interest rates, and updating your pre-approval letter if you desire. Let's chat about your unique situation and make a game plan. (It might also mean more inventory, because...)
Sellers: Is it time to list your property? Lower mortgage rates mean "the golden handcuffs" (of your current, staggeringly low interest rate) just might feel a little bit looser. If you're ready to come off the sidelines, determine how much your home is worth, and consider your next move, start with a no-obligation consultation with us.
Every Buyer and Seller's situation is unique, and we are happy to discuss what makes sense for your real estate goals. Reach out to us at Bell Property Partners for a complimentary consultation.
And cheers to lower interest rates!
