Mortgage Rates

After what seemed to be a never ending climb, mortgage rates are now expected to fall as soon as September. In last week’s report, economic data showed better than expected growth leading experts to predict mortgage rates will soon be cut by the FED.

It is said that a series of rate cuts could be scheduled for this year with up to four cuts possible before the end of 2025. What does this mean for home buyers or recent buyers? When interest ratea fall, prices tend to rise. However, the market is currently experiencing an over abundance of inventory. Buyers have been waiting for several reasons, one major reason being higher interest rates making the mortgage payments too high for some buyers.

As the cuts begin to occur, we may see prices begin to rise slightly. You may also start seeing more buyers competing for properties bringing back the practice of bidding wars among buyers. I’m not saying this will happen immediately, we have to have considerable cuts to kick the market and get us back to the market conditions where we start seeing inventory decline and buyers (especially investors) competing for available properties.

For now, we look forward to September and what the FED decides to do with interest rates.

Have you been waiting for interest rates to drop to begin the search for your home or investment properties? If so, let’s chat! Now’s the time to start looking and engaging with sellers.

– Rafael Amador, Realtor