As you think about buying or selling, you may be wondering what’s happening in today’s housing market. With so much fluctuation in prices and mortgage rates, it’s natural to feel uncertain. But understanding the factors driving these changes can help ease that.
Let’s go over the key points and talk about how to best approach this market.
Key Drivers of Current Market Volatility
The current market volatility reflects influences like economic reports, employment figures, Fed policies, and election-year factors. This combination of factors creates uncertainty, which fuels volatility.
Mortgage rates are especially sensitive to these shifts. Fresh economic data and global news can lead to abrupt rate changes, despite predictions that rates may eventually trend down. Monthly inflation and employment releases exemplify how these updates affect the market, and this pattern is set to continue.
As Greg McBride, CFA, Chief Financial Analyst at Bankrate, observes:
“After steadily declining throughout the summer months, I expect more ups and downs to mortgage rates . . . Job market data will be closely watched as well as any clues from the Fed about the extent of upcoming interest rate cuts.”
This is why the projected decline in mortgage rates won’t follow a straight line over the coming year. Hannah Jones, Senior Economic Research Analyst at Realtor.com, notes:
“Rates have shown considerable volatility lately, and may continue to do so . . . Overall, we still expect a downward long-term mortgage rate trend.”
Additionally, the housing market varies widely based on location. In some areas, prices are up, and inventory is tight; in others, there are more listings and moderate pricing shifts.
Staying informed can help you make the best decisions, whether buying or selling. And the simplest way to get the right insights is by working with a professional.
Why You Need a Pro on Your Side
The journey to buying a home has its share of bumps, but having a skilled agent means you’re never facing them alone. They’ll keep you up-to-date on the latest market news, help you navigate changes, and ensure you’re making decisions aligned with your goals.
For example, as mortgage rates fluctuate, your agent and lender will guide you through the impact on your monthly payments, showing how even minor rate changes affect your budget. With their support, you’ll be able to make informed choices without losing sight of your long-term financial plans.
Your agent also understands the nuances of local markets. From neighborhood competition to home availability and price trends, they’ll provide key insights so you can adapt to the market confidently.
Bottom Line
The housing market may shift, but it doesn’t have to delay your plans. With a skilled agent and lender, you’ll be ready to make informed decisions and take advantage of the opportunities available.
Let’s take on any uncertainty together and turn it into a positive step toward your future.