How the Federal Reserve’s Next Move Could Impact the Housing Market

Now that it’s September, all eyes are on the Federal Reserve (the Fed). The overwhelming expectation is that they’ll cut the Federal Funds Rate at their upcoming meeting, driven primarily by recent signs that inflation is cooling, and the job market is slowing down. Mark Zandi, Chief Economist at Moody’s Analytics, said: “They’re ready to cut, just as long as we don’t get an inflation surprise between now and September, which we won’t.” But what does this mean for the housing market, and more importantly, for you as a potential homebuyer or seller? Why a Federal Funds Rate Cut Matters The Federal Funds Rate is one of the key factors that influences mortgage rates – things like the economy, geopolitical uncertainty, and more also have an impact. When the Fed cuts the Federal Funds Rate, it signals what’s happening in the broader economy, and mortgage rates tend to respond. While a single rate cut might not lead to a dramatic drop in mortgage rates, it could contribute to the gradual decline that’s already happening. As Mike Fratantoni, Chief Economist at the Mortgage Bankers Association (MBA), points out: “Once the Fed kicks off a rate-cutting cycle, we do expect that mortgage rates will move somewhat lower.” And any upcoming Federal Funds Rate cut likely won’t be a one-time event. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says: “Generally, the rate-cutting cycle is not one-and-done. Six to eight rounds of rate cuts all through 2025 look likely.” The Projected Impact on Mortgage Rates Here’s what experts in the industry project for mortgage rates through 2025. One contributing factor to this ongoing gradual decline is the anticipated cuts from the Fed. The graph below shows the latest forecasts from Fannie Mae, MBA, NAR, and Wells Fargo (see graph below): So, with recent improvements in inflation and signs of a cooling job market, a Federal Funds Rate cut is likely to lead to a moderate decline in mortgage rates (shown in the dotted lines). Here are two big reasons why that’s good news for both buyers and sellers: 1. It Helps Alleviate the Lock-In Effect For current homeowners, lower mortgage rates could help ease the lock-in effect. That’s where people feel stuck within their current home because today’s rates are higher than what they locked in when they bought their current house. If the fear of losing your low-rate mortgage and facing higher costs has kept you out of the market, a slight reduction in rates could make selling a bit more attractive again. However, this isn’t expected to bring a flood of sellers to the market, as many homeowners may still be cautious about giving up their existing mortgage rate. 2. It Should Boost Buyer Activity For potential homebuyers, any drop in mortgage rates will provide a more inviting housing market. Lower mortgage rates can reduce the overall cost of homeownership, making it more feasible for you if you’ve been waiting to make a move. What Should You Do? While a Federal Funds Rate cut is not expected to lead to drastically lower mortgage rates, it will likely contribute to the gradual decrease that’s already happening. And while the anticipated rate cut represents a positive shift for the future of the housing market, it’s important to consider your options right now. Jacob Channel, Senior Economist at LendingTree, sums it up well: “Timing the market is basically impossible. If you’re always waiting for perfect market conditions, you’re going to be waiting forever. Buy now only if it’s a good idea for you.” Bottom Line The expected Federal Funds Rate cut, driven by improving inflation and slower job growth, is likely to have a positive, though gradual, impact on mortgage rates. That could help unlock opportunities for you. When you’re ready, let’s connect. That way you’ll be prepared to take action when the time is right for you.

Deydalie Swims With Dolphins For An Unforgettable Family Adventure

After Deydalie graduated kindergarten, what started as a time of celebration turned to family concerns when Deydalie began to experience excruciating knee pain. Deydalie’s mom, Rosa, pleaded with the doctors for answers, knowing something was wrong with her daughter. Her intuition was correct. Deydalie, at just six years old, was diagnosed with acute lymphoblastic leukemia (ALL). It was a day that changed everything for Deydalie and her family, marking the beginning of a challenging journey filled with pain, fear, and uncertainty. Deydalie began chemotherapy immediately, enduring two rounds of treatment in a matter of 20 days. The physical toll was immense; Deydalie was constantly getting infections, causing fevers, pain, and fatigue.   “Deydalie couldn’t even study for an hour for school because she was so sick,” said her mom, Rosa. "She faced each day with quiet strength, even as she lost her hair, eyelashes, and eyebrows to the chemo treatment." Despite the overwhelming challenges, Deydalie's spirit remained unbroken. Rosa Deydalie's mom A year into her battle, hope arrived in an unexpected form. Deydalie's oncologist mentioned Make-A-Wish Arizona and she knew immediately that she wanted to go to Hawaii. Inspired by a trip her parents had taken, she longed to swim with dolphins and feel the warm embrace of the ocean. It was a wish that symbolized freedom and joy.  Her wish came true after ringing the bell to celebrate the end of her chemotherapy months before and entering remission. The trip was a family affair, with her parents, her 10-year-old brother, 13-year-old sister, and one-year-old baby sister joining her. Deydalie was not a cancer patient for one magical week but a carefree child. She donned a different bikini each day, her inner diva shining brightly. Swimming with the dolphins was a highlight, the pure delight on her face, a sight that Rosa would never forget. Even the rainy days did not stop Deydalie from experiencing Jurassic World film locations. It was a time of healing and happiness, a precious respite from the battles they had fought.  Since that transformative trip, Deydalie has blossomed. Now, in fourth grade, she’s improved significantly in her schoolwork, which is evident in her academic progress. This summer, she is looking forward to attending Rainbow Camp in Williams, AZ., a special camp where she will meet other children who have faced similar battles.  Deydalie's journey is far from over, but the worst is behind her. The trip to Hawaii was more than just a wish; it was a beacon of hope and a reminder of life's joy. For Rosa, watching her daughter smile and laugh was a gift beyond measure.   “Deydalie was so strong and never cried. She went through so much, and I am glad that she was able to experience her wish come true.”   Her journey continues, marked by hope and the promise of what's possible.  ***********************************************************We are on a mission to raise $10,000 for Make-A- Wish Foundation ARIZONA, so for every house we sell this year we are donating a portion of our income to them. As you know Make-A-Wish Foundation does create life changing wishes for Arizona children with critical illnesses. The children we serve are fighting for their lives, and their families are doing everything that they can to help them in their battles. Last year they served thousands of children around Arizona. Chances are your family or someone you know has benefitted from the great work they do. Who do you know considering buying or selling a home you could refer to our real estate sales team? Not only will they benefit from our award- winning real estate service, a very worthy cause will benefit as well. I want to make it easy to refer your friends, neighbors, associates or family member.You can go to our website and enter their contact info online or forward the link to who you know considering a move. Of course you can always call me direct as well. Thank you so much for the referral!. "I Make Dreams A Reality In Realty"

Should You Sell Now? The Lifestyle Factors That Could Tip the Scale

Are you on the fence about whether to sell your house now or hold off? It’s a common dilemma, but here’s a key point to consider: your lifestyle might be the biggest factor in your decision. While financial aspects are important, sometimes the personal motivations for moving are reason enough to make the leap sooner rather than later. An annual report from the National Association of Realtors (NAR) offers insight into why homeowners like you chose to sell. All of the top reasons are related to life changes. As the graph below highlights: As the visual shows, the biggest motivators were the desire to be closer to friends or family, outgrowing their current house, or experiencing a significant life change like getting married or having a baby. The need to downsize or relocate for work also made the list. If you, like the homeowners in this report, find yourself needing features, space, or amenities your current home just can’t provide, it may be time to consider talking to a real estate agent about selling your house. Your needs matter. That agent will walk you through your options and what you can expect from today’s market, so you can make a confident decision based on what matters most to you and your loved ones. Your agent will also be able to help you understand how much equity you have and how it can make moving to meet your changing needs that much easier. As Danielle Hale, Chief Economist at Realtor.com, explains: “A consideration today's homeowners should review is what their home equity picture looks like. With the typical home listing price up 40% from just five years ago, many home sellers are sitting on a healthy equity cushion. This means they are likely to walk away from a home sale with proceeds that they can use to offset the amount of borrowing needed for their next home purchase.” Bottom Line Your lifestyle needs may be enough to motivate you to make a change. If you want help weighing the pros and cons of selling your house, let’s have a conversation.