Real Estate Trends

As of this week, the Federal Reserve has made its first rate cut since December, lowering the federal funds rate by 25 basis points, a move aimed at easing borrowing costs amid a softening labor market. This shift signals greater support for growth and could open new opportunities in housing—for both buyers and sellers.

Economic Outlook

The recent inflation reading of 2.9% in August—its highest since January—remains a concern, especially as wholesale prices rose more than expected. But the Fed's decision Wednesday responds directly to revised labor data, which shows job gains were overestimated. With the labor market cooling and inflation still above target, the central bank is stepping in—seeking a balance between managing inflation risks and supporting economic stability. That recalibration may create more favorable conditions for housing this fall than many had anticipated.

Mortgage Rates Lowest Since 2024

Mortgage rates have declined roughly 0.40% from their May highs and are now at their lowest point in the past 12 months. The spread between mortgage rates and 10-year Treasuries has tightened significantly, signaling improved rate stability. While Wednesday's rate cut is welcome news, the longer-term direction of mortgage rates will depend on how markets interpret the Fed's commitment to controlling inflation.

Buyer & Seller Impact

Lower rates are motivating buyers who've been watching from the sidelines—and sellers are starting to see more traffic at open houses and showings. Still, success depends on timing and realistic pricing. As market momentum builds, both buyers and sellers will benefit from a clear strategy and close coordination with lenders and agents.

Pat's Take

From what I've personally seen the last few weeks, it's clear the Fall Market is underway. What would have sold in a weekend back in May is often seeing a price cut or accepting an offer at 94%-98% of asking. There are still pockets of exceptional homes (pristine places in highly desirable neighborhoods that aren't overpriced) that are going into multiples. Less and less as we near the fourth quarter. My advice is to make sure due diligence is done when pricing out a home to list and minding the data when writing an offer. And, knowing that the power in the negotiations is slowly going back to buyers, is vital to remember.