Fed Cuts Rates By 25 Basis Points In November
What's in store for 2025?
Now that the election is over and the Fed cut 25 basis points in November there is much to consider for the real estate market in 2025. Among the top 10 issues for 2025- housing inventory, affordability(mortgage rates), political uncertainty and geopolitical risks rank high. Stubbornly high mortgage rages are affecting buyer purchasing power. Mortgage rates are expected to settle into the 6% area for 2025 which should help increase inventory for sellers and buyers who are on the fence.
Consumer spending remained strong and the Producer Price Index came in higher than expected, a sign that the goal of lower inflation will be more challenging going forward. Annual inflation rate for October came in at 2.6%, as expected, with rent and housing prices continuing to be a major contributor. The good news is that delinquent mortgages are only at 2.8%.
Home Prices Still Rising
More supply is slowly coming online, but, low inventory levels continue to give sellers the upper hand. Having said that, higher rates are curbing buyer demand.
Locally many areas are experiencing gains, some not, see below for more information on your area.
SOME GOOD READS/RESOURCES:
LA County Assessor
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10 Home Design Trends for 2025!
Weekly national mortgage rates for loans under $400,000, top credit scores:
30 yr. fixed rate | 7.05 |
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15 yr. fixed rate | 6.43 |
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