What's Up With Real Estate

Fed Keeps Rates Steady, Mortgage Rates Dip

 

Economic reports are proving to be troublesome for mortgage rates. The Consumer Price Index(CPI) came in hotter than expected at 3.3% and the Fed is in no hurry to lower short term rates. Additionally, the consumer appears to be doing some belt tightening as retail sales came in sharply lower. The Fed signaled that they are comfortable with the status quo and left rates unchanged this month. Future rate cut decisions will depend on inflation, tariff concerns and geopolitical risks. The jobs report came in much lower than expected with wages rising more than expected, but, mortgage rates did dip, a little, bringing some hope to home buyers.

Locally, the market feels like it's been shifting more towards a buyer's market. We are seeing more price reductions and longer days on market. The key will be mortgage rates, which for 2025, are expected to be in the range of 6.5%-7.1%, we really need them to be closer to 6% to significantly impact buyer demand. Good news though, as you can see in the stats below, inventory did improve slightly, depending on the area with median list prices increasing in more areas.

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