The Fall real estate selling season has opened with the lowest interest rates since Spring 2023, which improved housing affordability. The August market was in a holding pattern due to anticipated interest rate cuts to the Fed's benchmark rate, financial market volatility, and presidential election news. As a result of the interest rate cut on Sept. 18th, we expect a substantial rebound this Fall and beyond.
The following are recent quotes about the market:
"The time has come for policy. to adjust... the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks... My confidence has grown that inflation is on a sustainable path back to 2%."
- Jerome Powell, Chairman, Federal Reserve Bank
"We forecast mortgage rates to gradually decline in the coming quarters and anticipate a significant surge in homebuying demand, mainly from the first-time homebuyers left at the margins. However, the tight inventory is still expected to limit home sales. We expect home sales to increase modestly the remainder of the year and home prices to rise in 2025."
- Freddie Mac Research (FHLMC)
"Presidential elections have little impact on home sales... [ultimately] home purchases are usually life decisions rather than political ones."
- John Burns Research & Consulting
As always, we are here to answer any real estate or market questions you may have. Please don't hesitate to contact us if you should have any.
Sincerely,
THE RESOLVE GROUP
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