This week, the Federal Reserve is widely expected to lower interest rates. Understandably, many homebuyers and sellers are watching this closely and wondering how it will affect the housing market. But before you get too excited (or too worried), let’s clear up one of the most common misconceptions in real estate: the Fed does not directly set mortgage rates.
It’s natural to think that waiting for lower interest rates will bring a wave of eager buyers and higher offers for your home. After all, if rates drop, buyers can afford more—so shouldn’t you wait until then to sell?
The truth might surprise you.
You may have seen talk online that new home inventory is at its highest level since the crash. And if you lived through the crash back in 2008, seeing new construction is up again may feel a little scary.
But here’s what you need to remember: a lot of what you see online is designed to get clicks. So, you may not be getting the full story. A closer look at the data and a little expert insight can change your perspective completely.
When you sell a house, the last thing you want is for the deal to fall apart right before closing. But according to the latest data from Redfin, that’s happening a bit more often lately. The good news is, it’s completely avoidable if you lean on an agent for insight into why that is and how to avoid it happening to you.
After the most recent jobs report came out weaker than expected, the bond market reacted almost instantly. And, as a result, in early August mortgage rates dropped to their lowest point so far this year (6.55%).
While that may not sound like a big deal, pretty much every buyer has been waiting for rates to fall. And even a seemingly small drop like this reignites the hope we’re finally going to see rates trending down. But what’s realistic to expect?
