It’s Election Season and that can make real estate tricky… Unless you’ve done your research. Don’t worry, we did that for you!

THIS MONTH’S MARKET UPDATE

MORTGAGE RATES:

In early October, we saw rates bottom out just above 6%. The major drops preceded the Fed rate cuts, and as expected, mortgage rates actually came up around that time. A good way to imagine the difference between mortgage rates and federal funds rate is that mortgage rates are changing in real time with the market, while the fed adjust rates in a reactionary manner. Often, like this last month, mortgage rates will be cut much sooner than the fed funds rate. Now back in the high 6’s, they may adjust slightly but the mid-6 range is likely the norm for some time.

MARKET NEWS:

One word - slow. The market is moving, but at a gradual pace (characteristic for Election Season). As referenced by last month’s major stats and the weekly trend line of unsold listings growing, things are just taking more time right now. All that said, with general highly-desirable properties such as distressed-rehab homes, small acreage under $750k, etc., we are still seeing plenty of multiple-offer situations.

In closing, don’t expect this pace to continue after the election and into 2025.

History tends to repeat itself, and if it does once again, we should be looking at an uptick in both closed sales and price appreciation. Match that with (likely) continued improvement of interest rates in early 2025, we could be looking at a very active real estate market to start the year.

Click this video below to learn more!