Fed Cuts Rates Sept 2024

It's been 1,650 days since the Federal Reserve last cut interest rates.

During this era of rising rates, we've seen:

• Mortgage rates peak at nearly 8% in October 2023
• Existing home sales plummet to 1995 levels
• Home affordability hit a 40-year low

So, when we got the news yesterday that the Federal Reserve was cutting interest rates by 0.5%, we were elated.

Not because this single cut will dramatically change the market overnight — but because the Federal Reserve is signaling that this is the beginning, not the end, of rate cuts.

Yes, lower mortgage rates will result in more buyers, increased competition, and likely more refinancing. 

But it could also lead to something more important:

More homes hitting the market.

According to a recent Bankrate survey, only a tiny fraction of homeowners — just 5% — feel comfortable selling their homes with mortgage rates at 6% or higher.

However, there’s a glimmer of hope for the housing market. 

The survey revealed that more than a third of homeowners (35%) would be willing to sell their homes if mortgage rates dip below 6%.

More homes hitting the market should lead to a healthy and stable real estate market.

Buyers and sellers alike can rejoice in that news.

As always, I'm here to keep you informed about what’s happening in the market.

Sincerely,
Jimmy

P.S. One of my clients wanted to sell their home, but they were afraid they wouldn’t be able to find a new one. After preparing and marketing their home, we got them $14,200 above their desired sales price, and we helped them find a new home to move into in less than 53 days. If you’re feeling stuck, overwhelmed, or just confused, call me directly at 555-555-555 for professional guidance.