Eckington By The Numbers || Weekend 09.20.2024

The Federal Reserve Just Cut Rates for the First Time Since COVID
Let that sink in. Doesn't COVID feel like a lifetime ago? Well, that’s exactly why the real estate market has been facing so many headwinds. Rates peaked on October 19, 2023, with an average 30-year fixed mortgage at 8.01%. Those high rates not only made buyers pause, but sellers too. Why list your home if you’ll be facing a smaller pool of buyers and then have to buy in the same tough market?

So, what does this first rate cut of half a point mean? It means we're starting to see a shift. And now is the perfect time to take advantage of this changing market in ways you might not expect.

Where are rates now?
Currently, we’re seeing an average of 6% for a 30-year fixed mortgage. With the recent Fed cut and continued positive news on inflation, market rates are likely to dip even further. This slight downward shift will bring more buyers into the marketplace, especially as we head into the fall. Even though the upcoming election might make some hesitant, I believe we’ll see an uptick in activity.

Looking ahead to 2025
The Federal Reserve is widely expected to cut rates again before 2025. By the time spring rolls around, rates could be significantly lower. That’s when I predict the DC real estate market will be full speed ahead—think multiple offers, waived contingencies, and even bidding wars.

If you’re a seller, you might be thinking, "I’ll wait and sell then." That could work if you’re not buying at the same time. But if you are buying, there’s a sweet spot right now where rates are coming down and property values are more balanced. Buyers in certain segments may even find properties below market value.

I believe this window of opportunity lasts until January. After that, things will heat up fast. This is one of those rare moments when you get to choose your market conditions. So, what kind of market do you want to buy in? The choice seems clear to me—don’t sleep on this!