ReCasa Financial Blog

The moment everyone has been waiting for… mortgage interest rates are starting to lower. Interest rates decreased by a half percentage within the last week by the Federal Reserve. The 30-year mortgage rate is around 6.09%, down from a peak of 7.8%. Federal leaders believe, that by 2025, interest rates will be cut by another 1.5% points.

Keith Gumbinger, VP of HSH.com, an online mortgage company, believes that while getting mortgage rates to a range of upper 4% - lower 5% would benefit the real estate market, it could be a while before rates hit those rates.

This change is encouraging people to get back into the housing market. People who held off on looking to purchase a home are now shopping. Real estate professionals believe that bidding wars will begin. While it might not happen in the next few months, real estate professionals believe that the spring will be a great selling season.

According to Forbes, the real estate market is starting to show signs of leaning towards a buyers’ market. In addition to the change in interest rates, there are new MLS policies that will benefit both buyers and sellers that took effect August 17. 2024.

Read about the policy changes here - 9 Agent Takeaways from the NAR Settlement | Zillow Premier Agent

Have you noticed any changes in your area with the interest rate decrease?