We’ve probably all heard the good news on rate cuts. On September 18th, the Federal Reserve made a cut by 50-basis points.
Homebuyers have waited patiently, or not so patiently, for this long anticipated rate cut.
More Rate Cuts Predicted
What can we expect now that the Feds have begun cutting rates?
The experts remain optimistic that more cuts are in the pipeline this year.
In fact, according to an Inman article, it is a matter of how many rate cuts are anticipated rather than if there are going to be further rate cuts.
The Inman article references a poll done by Reuters between September 6-10. The poll revealed that “most economists believed we would see three rate cuts before the end of the year.”
A nugget of wisdom that the article shares is to look at the 10 year treasury yield in order to anticipate 30 year mortgage rates. The two have moved in unison for over 50 years.
Impact on the Housing Market
So what do the rate cuts mean for the housing market?
Movement Mortgage reported their observations of the housing market’s response to the lower rates. Their article states, “In the housing market, inventory is rising due to the lower rates, yet the market remains tight, as evidenced by the persistent increase in median home prices.”
Keep in mind that the rate cut occurred recently. Furthermore, it is anticipated that there are more rate cuts to come.
According to the Inman article, “interest rates below 6 percent could be a key factor in unlocking some of the inventory we need in much of the country to see an increase in transactions.”
Fluid Realty
The Fluid Realty Team is Jacksonville’s top real estate group and local boutique brokerage. We provide a full-service experience with the best realtors in the area. Our expertise includes luxury beach real estate within the four Beaches of Jacksonville, FL: Atlantic Beach, Neptune Beach, Jacksonville Beach, and Ponte Vedra Beach.
