| How is the market doing after the Fed rate cuts |
 Many people have asked us how the Fed’s historic 50 basis point rate cut on September 18th has affected the real estate market and mortgage rates. The Truth is, the market hasn’t changed much in Utah because mortgage companies were already pricing down interest rates in anticipation of the Fed’s cut. The market remained fairly steady in Utah from 2023 to 2024. Overall, it is up about 3% in both price and home sales year over year. We are very fortunate in Utah because we have such a strong economy with low unemployment. Other states’ housing markets have suffered far more than ours.  One encouraging thing that Jerome Powell said, in his September 18th announcement, was that we can anticipate more Fed rate cuts in the future. He said we could estimate a 25 basis point cut potentially on Nov 7th and Dec 18th, and they hope to do a 100 total basis point cut in 2025.  So, what does that mean for the future? A conservative estimate is that 30-year mortgage rates will be in the high 4% or low 5% range towards the end of 2025. For every ½ percentage drop in mortgage rates, an additional 2.3-2.6 million new qualified buyers enter the United States market (on top of the buyers already in the market). So, as rates drop, the market will take off and prices will most likely rise.  If you have purchased a home in the last 2 years, you should consider refinancing. Also, if you are ‘sitting on the fence’ and considering a move, you would benefit from purchasing a property now with the higher interest rates and refinancing next year. That way you can negotiate a lower price now.  We would love to answer your questions about the market and help you find a property. Please call us today at 801-830-1717 Also if you would like to learn more about how Fed cuts affect 30 year mortgage rates, here is a great video done by agent Mike Molina. https://www.youtube.com/watch?v=acnd8NqTNH4 Ashley, Elizabeth, Debbie and Brooke Follow us on Facebook and Instagram for travel tips, new listings, and home design inspiration.   Copyright © 2024 Ashley Jensen and Associates, Lotus Real Estate. All rights reserved. Our mailing address is: 2533 N. 460 East Provo UT 84604 |
