Lions, Tigers, Bears…oh my
Considering the most recent Hurricane season many of you have reached out to ask what is going on with the Tampa Bay market? As we begin to peer around the corner of the real estate landscape, we can't help but wonder what surprises might be in store for us. Will it be Lions, Tigers, Bears... oh my!
Let's dive in...
What in the World is Happening with Mortgage Interest Rates!
For the past three months, it seems like the real estate market has been holding its breath. With interest rates doing the cha-cha, election season, and economic uncertainty keeping everyone on their toes, homebuyers have been a bit hesitant to dive in. And honestly, who can blame them? Real estate, like your favorite sitcom, thrives on stability and predictability. When the plot gets too twisty, some viewers (buyers)—decide to take a break. Growing up in real estate, I’ve seen this episode play out time and again, and let me tell you, it’s often a missed opportunity for those would-be homebuyers.
Thankfully, as of today, we know a lot more than we did just a few months ago. As your real estate professional, I want you to be in the loop about what I’m seeing and where I think things are headed. If you’re considering making a move, you may need to prepare for more than just a new address. 😊
Understanding the Mortgage Rate Rollercoaster
After nearly four years of rate hikes that felt like climbing a never-ending mountain, the Federal Reserve has finally decided to give us a break and start lowering rates...
With recent cuts of a half-point in September, followed by a quarter point in November, the Fed is still leaving the door wide open for a final cut before year’s end—which I would fully expect.
So then why haven’t mortgage rates dropped?
While the Fed’s moves influence interest rates, they don’t have a magic wand over fixed mortgage rates. Mortgage rates tend to follow the 10-year Treasury yield, which reflects the overall economic sentiment. Recently, a surge in the stock market, driven by investor confidence, pushed bond yields up to a four-month high of 4.479%. As bond yields rise, so do mortgage rates, indicating reduced demand for bonds. This is a temporary reaction to major shifts.
So, what does this mean for mortgage rates? While they may not drop fast, the Fed’s shift signals that rates are likely to keep trending down. In my experience, lower rates almost always boost homebuying demand, and with many buyers waiting for favorable conditions, we could see 2025 kick off with a real estate bang.
What This Means for Buyers and Sellers
For buyers, the window to snag a decent deal is closing faster than a revolving door. Those waiting for mortgage rates to drop further might find themselves facing higher home prices and tougher negotiating conditions. In my opinion, between now and December 31st is your best chance to take advantage of relatively calm buyer activity. Once we hit the new year, the scales could quickly tip back in sellers’ favor.
And for sellers, the landscape is just as dynamic. With inventory at historically low levels, listing your property now could give you a competitive edge with less competition in your area. But time will tell… I believe we’re moving into a season where sellers—once again—reign supreme.
My Advice
If you’re a buyer, waiting for lower mortgage rates might seem wise, but it will almost certainly cost you in other ways. Think of it this way: holding off for lower rates is like waiting for perfect weather to shop for a convertible. By then, everyone wants one. Locking in a property before January may be your best chance to avoid the weight of a more competitive market.
For sellers, now is the time to reach out to me. If you’ve been waiting for your moment, welcome. Let’s talk about how to take full advantage.
As always, I’m here to help with your specific situation. If you have questions about what this means for your home sale or search, let’s grab coffee and discuss! ☕