We got the Fed Funds rate cut we've been waiting for last week.  Remember, the financial markets are a forward looking discount mechanism.  The bond market and 10yr yield that we like to track in this newsletter was way ahead of this decision.  If you've been reading this newsletter, we've watched mortgage rates come down from earlier this year to where they are now before any official rate cut was announced.  Someone paying really close attention last week would have noticed that mortgage rates actually went up a few points the next day.  This was due to some stronger than expected economic data in the new home builders sector with a positive permits print.  I am writing this on Tuesday morning with rates hovering in the 6.125 - 6.20% range.  So, when will we see lower?  When do rates break 6% into the 5's?  Well, they've already come down quite a bit from April of this year to now.  We will likely need to see some weaker economic data points come out over the coming months in order to break into the high 5's.  You know what I am going to say here.  I don't know how quickly we get there, but if buying a home or selling a home is in the cards sometime soon, preparation should be of the highest priority.  If you are a buyer, beating the competition to come should be paramount.  If you are a seller, for me it breaks down into two scenarios, a seller that needs to sell to buy, and a seller that doesn't need to sell to buy.  A seller that needs to sell to buy should think about making the preparations sooner than later, whereas the seller selling without a contingency to buy a replacement property could hold until Spring 2025.


What are you seeing or hearing? I'd love to know paul@guiderealestate.com
Visit www.paulpelettarealtor.com