The Timing Of Interest Rate Changes ...
...is not affecting home prices
Once again the Fed decided to keep interest rates the same
While individuals, and businesses alike, want rates to be lowered
the Fed has signaled that they think rates are where they need to be
and unpopular of an opinion as it might be
there is some evidence that they aren't necessarily wrong
home values increased 3% in the 1st Quarter of 2025 as compared to the same quarter in 2024
There are only 4 meetings left in 2025
so if there is going to be surge of buying over the summer months
it will be based on the strength of the real estate market
and not due to the cost of money being less expensive
and with that, we would know with great certainty
that the housing market is solid
without manipulation of interest rates
so when the Fed eventually lowers rates
there could very well be a surge in the real estate space
if you have been playing the wait and see game
watch for 2 interest rate changes over the next 4 meetings
my suspicion is that you will see one in July or September
and the other one In October or December
with the likelihood that home values continue to increase
the monthly home loan payment will not see much change
listen for the explanation on how and why things are playing out
