Have You Heard?
Interest rates dropped! Booyah! This is fantastic news for both buyers and sellers in the market. We've been following things closely to see what trends are emerging and the landscape is shifting in favor of nearly everyone involved. Let’s dive into why things are looking up.
First, buyers can be optimistically hopeful. Lower interest rates mean more affordable mortgage payments, making homeownership a more accessible dream. This drop in rates is especially beneficial for first-time buyers who might have been hesitating due to financial constraints. With reduced monthly payments, buyers can afford more than they previously could.
For buyers, especially first-time homebuyers, decreased interest rates mean lower monthly mortgage payments and a higher borrowing capacity. Essentially, you can get more bang for your buck. Imagine paying less over the life of your loan while potentially being able to afford an upgraded home or a better location.
Why are Interest Rates Lowering?
Market Corner with Lacie Zachary
To get more insight into what’s happening with interest rates, we met with Lacie Zachary with Guild Mortgage, who gave us some very encouraging insights into these changes.
“The recent lowering of the interest rate was in large part due to the number of people on unemployment. As of this morning, the Fed Futures market is predicting an 88 percent chance of a 50 basis point rate cut in September with the Futures market predicting the Fed cutting rates 150 basis points by next March. What this equates to is about a 1.5% reduced interest rate."
“On September 6, we will see the August Non-Farm Payroll report. If this does not show a rebound of the unemployment rate, then we will likely see another drop in interest rates. This would be very encouraging news, indicating that our economy will have a soft landing.”
What This Means for Sellers
For sellers, this can also be a significant win. With buyers eager to take advantage of lower rates, the market sees increased activity. More potential buyers can lead to competitive offers, potentially driving up property prices. Additionally, homes are likely to spend less time on the market, making the selling process quicker and smoother. If you’re not quite ready to sell but are thinking about it, now would be a good time to address minor repairs, doing some touch-up painting, and decluttering to help with staging in the future.
We are in This Together
We’ve been able to weather a lot together over the last year! With these changes that are happening, we are feeling heartened about opportunities.
We love our people and our community. This news is exciting for us because of what it means for you.
It means growth.
It means achieving goals.
It means a happy change for your family.
It means opportunity.
What’s Next?
If you’ve been out of the real estate game for a little while, an easy way to start becoming more familiar with the market is with our amazing app. It’s the best real estate market app out there, hands down. It’s better than Zillow. It’s better than Realtor.com. It’s so user friendly, and best of all WE NEVER SELL YOUR INFO TO ANYONE! (Anyone else tired of spam?)
Here are the links to access and download our app. Take a look and keep an eye on what’s out there! Google Play and iTunes.
Take care,
Blake Shawn and
The Shawn Team
The Shawn Team
The Shawn Team
1951 Hillman St. Tulare, CA 93274
