10/31/2025
HOMEBUYERS, Don't get locked out again!!
What's up with interest rates? In the midst of wall-to-wall media coverage about the government shutdown, the Federal Reserve Board decision on interest rates was essentially a non-event. But, for all who care, here's what happened. The Fed .25% rate cut was only the second cut this year, with the first being a .25% cut in September.
While these directly affect banks' prime rate based loans, the cuts do not directly impact mortgage rates, although mortgage rates have trended downward over recent weeks. What's next? Another Fed announcement comes in December, but Chairman Powell is not tipping his hand. And, looking forward to mid-2026, Powell's term as Chairman will end and the chances are strong that more robust cuts will be rolling out as Powell exits. Expect mortgage rates to drop, too.
So what should potential homebuyers do? We only have to look back just a few years for the answer. Interest rates were fantastic then, but those low rates shut the door on multitudes of buyers, especially first time buyers!! The reason... supply and demand. There were far more want-to-be buyers than homes for sell, sending home prices much higher and creating bidding wars that led to buyers paying thousands more than appraised value. Many were shut out of the market back then... and it could very well happen again as interest rates move down in 2026.
So, what's the answer? Well, I've been coaching more and more people and the answer is not the same for everyone. So, here's my offer: Contact me privately and let's talk about your specific situation. There's no cost or commitment. There is a 100% privacy promise and my absolute no hassle guarantee. NMLS #500738
[email protected] AskMrMortgage.com 256.679.2684
