Here’s what buyers and sellers need to know about interest rates.
What’s happening in our housing market? Today, the Federal Reserve made a favorable decision for buyers who have been waiting—they chose not to raise interest rates once again. This is a great sign for people looking for interest rates to finally come down.
In October, rates were at 8%, but now they hover in the high-6% range and are expected to keep trending downward. In Massachusetts and New Hampshire, we’re observing an uptick in traffic despite the seasonal downturn between Thanksgiving and Christmas, which is historically a slow time. Why is all this happening? Last month marked the lowest inflation rate in three years. The Federal Reserve believes national inflation is under control, which was the main reason why they raised interest rates in the first place.
“Rates tend to trend downward in election years. ”
The future remains uncertain, especially with holidays and shopping approaching. However, lowering rates becomes crucial for a competitive spring housing market. While I don’t like to mention politics, I have to mention that 2024 is an election year, and interest rates tend to trend downward during election season.
As we get further into 2024 and the election, I anticipate a further decrease in interest rates. If the decline isn’t swift enough, there’s even the possibility of a rate drop to stimulate the spring housing market during the election period.
The bottom line is that this is great news for our housing market. Call or email me if you want to discuss your moving plans for this year. I look forward to hearing from you!
