4-Car Garage! BERKSHIRE HATHAWAY HOMESERVICES COLORADO PROPERTIES The Average Days on Market in Montrose has increased over 16% compared to last year. If you'd like more information about the value of your home, give us a call today. 16% MONTROSE $419,000 67317 Leadville Court 3 Beds 2 Baths 11530 sq ft. 14 Acres Don Bailey, 970.209.8257 HOW THE FEDERAL RESERVE'S NEXT MOVE COULD IMPACT THE HOUSING MARKET Now that it's September, all eyes are on the Federal Reserve (the Fed). The overwhelming expectation is that they cut the Federal Funds Rate at their upcoming meeting driven primarily by recent signs that inflation is cooling, and the job market is slowing down. Mark Zand. Chief Economist at Moody's Analytics said "They're ready to cut just as long as we don't get on inflation surprise between now and September, which we won't But what does this mean for the housing market, and more importantly, for you as a potential homebuyer or seler? WHY A FEDERAL FUNDS RATE CUT MATTERS The Federal Funds Rate is one of the key factors that influences mortgage rates things like the economy, geopolitical uncertainty, and more also have an impact When the Fed cuts the Federal Funds Rate it signals what's happening in the broader economy, and mortgage rates tend to respond. While a single rate cut might not lead to a dramatic drop in mortgage rates it could contribute to the gradual decline that's already happening THE PROJECTED IMPACT ON MORTGAGE RATES Here's what experts in the industry project for mortgage tough 2025 One contributing factor to this ongoing gradual decline is the anticipated cuts from the Fed So, with recent improvements in inflation and signs of a cooling job market, a Federal Funds Rate cut is likely to lead to a moderate decine in mortgage rates. Here are two big reasons why that's good news for both buyers and sellers 1. It Helps Alleviate the Lock-In Effect For cument homeowners, lower mortgage rates could help ease the lock-in effect. That's where people feel stuck within their current home because today's rates are higher than what they locked in when they bought their current house the fear of losing your low-rate mortgage and facing higher costs has kept you out of the market, a sight reduction in rates could make selling a bit more attractive again However, this isn't expected to bring a flood of sellers to the market, as many homeowners may stil be cautious about giving up their existing mortgage rate 2. It Should Boost Buyer Activity For potential homebuyers, any drop in mortgage rates will provide a more inviting housing market Lower mortgage rates can reduce the overall cost of homeownership. making it more feasible for you if you've been waiting to make a move WHAT SHOULD YOU DO? As Mike Fratanton Chief Economist at the Mortgage While a Federal Funds Rate out is not expected to lead to Bankers Association (MBA), points out "Once the Fed kicks off a rate-cutting cycle, we do expect that mortgage rates will move somewhat lower." And any upcoming Federal Funds Rate cut likely won't be a one-time event. Lawrence Yun Chief Economist at the National Association of Realtors (NAR) sys Generally, the rate-cutting cycle is not one-and- done. Six to eight rounds of rate cuts all through 2025 look likely BOTTOM LINE drastically lower mortgage rates, it will likely contribute to the gradual decrease that's already happening And while the anticipated rate cut represents a positive shift for the future of the housing market, it's important to consider your options right now. Jacob Channel, Senior Economist at LendingTree, sums it up well Timing the market is basically impossible. If you're always waiting for perfect market conditions, you're going to be waiting forever. Buy now only if it's a good idea for you The expected Federal Funds Rate cut, driven by improving inflation and slower job growth, is likely to have a positive, though gradual impact on mortgage rates. That could help unlock opportunities for you When you're ready, let's connect. That way you'll be prepared to take action when the time is night for you bhhscolorado.com 1970.249.4663 Real estate services in Montrose and beyond! 11 Offices and over 160 real estate brokers Call one of our trusted real estate brokers: Trena Unrein, Brian Unrein, Autumn Barrett, Don Bailey. Jeff Keenfus Kree Christie, Linda Stell, Makaya Cervone, Michael Scott Dosch, Heidi Lutz, Mehdi Sepah, and Donna Justin 4 - Car Garage ! BERKSHIRE HATHAWAY HOMESERVICES COLORADO PROPERTIES The Average Days on Market in Montrose has increased over 16 % compared to last year . If you'd like more information about the value of your home , give us a call today . 16 % MONTROSE $ 419,000 67317 Leadville Court 3 Beds 2 Baths 11530 sq ft . 14 Acres Don Bailey , 970.209.8257 HOW THE FEDERAL RESERVE'S NEXT MOVE COULD IMPACT THE HOUSING MARKET Now that it's September , all eyes are on the Federal Reserve ( the Fed ) . The overwhelming expectation is that they cut the Federal Funds Rate at their upcoming meeting driven primarily by recent signs that inflation is cooling , and the job market is slowing down . Mark Zand . Chief Economist at Moody's Analytics said " They're ready to cut just as long as we don't get on inflation surprise between now and September , which we won't But what does this mean for the housing market , and more importantly , for you as a potential homebuyer or seler ? WHY A FEDERAL FUNDS RATE CUT MATTERS The Federal Funds Rate is one of the key factors that influences mortgage rates things like the economy , geopolitical uncertainty , and more also have an impact When the Fed cuts the Federal Funds Rate it signals what's happening in the broader economy , and mortgage rates tend to respond . While a single rate cut might not lead to a dramatic drop in mortgage rates it could contribute to the gradual decline that's already happening THE PROJECTED IMPACT ON MORTGAGE RATES Here's what experts in the industry project for mortgage tough 2025 One contributing factor to this ongoing gradual decline is the anticipated cuts from the Fed So , with recent improvements in inflation and signs of a cooling job market , a Federal Funds Rate cut is likely to lead to a moderate decine in mortgage rates . Here are two big reasons why that's good news for both buyers and sellers 1. It Helps Alleviate the Lock - In Effect For cument homeowners , lower mortgage rates could help ease the lock - in effect . That's where people feel stuck within their current home because today's rates are higher than what they locked in when they bought their current house the fear of losing your low - rate mortgage and facing higher costs has kept you out of the market , a sight reduction in rates could make selling a bit more attractive again However , this isn't expected to bring a flood of sellers to the market , as many homeowners may stil be cautious about giving up their existing mortgage rate 2. It Should Boost Buyer Activity For potential homebuyers , any drop in mortgage rates will provide a more inviting housing market Lower mortgage rates can reduce the overall cost of homeownership . making it more feasible for you if you've been waiting to make a move WHAT SHOULD YOU DO ? As Mike Fratanton Chief Economist at the Mortgage While a Federal Funds Rate out is not expected to lead to Bankers Association ( MBA ) , points out " Once the Fed kicks off a rate - cutting cycle , we do expect that mortgage rates will move somewhat lower . " And any upcoming Federal Funds Rate cut likely won't be a one - time event . Lawrence Yun Chief Economist at the National Association of Realtors ( NAR ) sys Generally , the rate - cutting cycle is not one - and- done . Six to eight rounds of rate cuts all through 2025 look likely BOTTOM LINE drastically lower mortgage rates , it will likely contribute to the gradual decrease that's already happening And while the anticipated rate cut represents a positive shift for the future of the housing market , it's important to consider your options right now . Jacob Channel , Senior Economist at LendingTree , sums it up well Timing the market is basically impossible . If you're always waiting for perfect market conditions , you're going to be waiting forever . Buy now only if it's a good idea for you The expected Federal Funds Rate cut , driven by improving inflation and slower job growth , is likely to have a positive , though gradual impact on mortgage rates . That could help unlock opportunities for you When you're ready , let's connect . That way you'll be prepared to take action when the time is night for you bhhscolorado.com 1970.249.4663 Real estate services in Montrose and beyond ! 11 Offices and over 160 real estate brokers Call one of our trusted real estate brokers : Trena Unrein , Brian Unrein , Autumn Barrett , Don Bailey . Jeff Keenfus Kree Christie , Linda Stell , Makaya Cervone , Michael Scott Dosch , Heidi Lutz , Mehdi Sepah , and Donna Justin