Wayne Pinegar Engel & Voelkers Pikes Peak

03/11/2025

Why did the mortgage rates tick up just after the fed cut their lending rates.
by Wayne Pinegar November 03, 2025 03:25 PM

If you are wondering why mortgage rates actually increased some after the recent fed rate cut, you are not alone. It is a very common—question! It can feel confusing when the headlines say the Federal Reserve just cut rates, but mortgage rates actually tick up. Let’s break down why this happens:

1. Mortgage Rates Aren’t Directly Tied to the Fed Rate
The Federal Reserve controls the “federal funds rate,” which is what banks charge each other for overnight loans. Mortgage rates, on the other hand, are more closely linked to the yield on the 10-year U.S. Treasury bond. While these often move in the same direction, they don’t always move together, and sometimes they even head in opposite directions.

2. Market Expectations Play a Huge Role
If investors expect the Fed to cut rates, they may have already adjusted their behavior before the actual announcement. When the cut finally happens, it might not have much impact—or could even cause rates to rise if the market is disappointed or sees signs of inflation ahead.

3. Inflation and Economic Outlook
Mortgage rates are heavily influenced by what investors think will happen with inflation and the broader economy. If a Fed rate cut makes investors worry about higher inflation, or if economic data suggests the economy is still running hot, mortgage rates can actually rise.

4. Supply and Demand for Bonds
Mortgage rates are also affected by the demand for mortgage-backed securities (MBS). If investors pull back from buying these bonds, rates can go up—even if the Fed has just cut its rate.

In Summary
The Fed’s moves are just one piece of a much larger puzzle.
Mortgage rates reflect complex market forces, not just Fed policy.
It’s common to see short-term bumps up or down after a Fed announcement as markets digest new information.

14/08/2025

Why Are Interest Rates Expected to Drop?
by Wayne Pinegar August 13, 2025 03:19 PM
Why Are Interest Rates Expected to Drop?
Interest rates are like the weather—constantly changing and influenced by lots of factors. The biggest player is the Federal Reserve (the Fed), which sets the benchmark rate that affects everything from mortgages to car loans. Lately, there have been signs that inflation is cooling and the economy is stabilizing, which gives the Fed more room to lower rates without risking another wave of rising prices.

What Could a Rate Drop Mean for You?
Homebuyers: Lower rates mean more affordable monthly payments. If you’ve been on the fence about buying, this fall could bring some welcome relief.
Homeowners: If you already own and have a higher-rate mortgage, a rate drop could be your chance to refinance and save money over the long run.
Investors: Lower rates often boost the housing market, which can be good news if you’re looking to sell or invest in real estate.
What’s the Catch?
Of course, nothing is guaranteed. The Fed watches economic data closely, and any surprises—like a sudden spike in inflation or global events—could change their plans. But many experts are optimistic that we’ll see at least a modest drop in rates as early as September.

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22/05/2025

🌟 Wondering how tariffs are affecting the prices of homes, groceries, and everyday goods? You’re not alone! My latest blog explores why buyers are feeling anxious—and more importantly, how we can stay optimistic and make smart choices in a changing market. Check it out and let’s keep moving forward together!

Read the full blog here:

Tariffs might sound like a word reserved for economists and politicians

22/05/2025

🌟 Wondering how tariffs are affecting the prices of homes, groceries, and everyday goods? You’re not alone! My latest blog explores why buyers are feeling anxious—and more importantly, how we can stay optimistic and make smart choices in a changing market. Check it out and let’s keep moving forward together!

Read the full blog here: https://www.facebook.com/profile.php?id=100086220245759

I handle all real estate from buyers to sellers. One of my specialties is land & custom home builds

18/03/2025

Why interest rates are still high

In recent months, the real estate market has been buzzing with activity and speculation. Buyers and sellers alike are closely monitoring interest rates, which play a significant role in determining affordability and investment returns. Despite the Federal Reserve's decision to cut policy rates, many are perplexed as to why mortgage interest rates remain stubbornly high.

For buyers, high interest rates translate to higher monthly mortgage payments. This can limit purchasing power and make it more challenging to find affordable homes within desired locations. As a result, some potential buyers may be opting to wait for a more favorable rate environment before making a move. However, it's essential to remember that real estate is a long-term investment, and waiting indefinitely may not be the best strategy given market dynamics.

Sellers, on the other hand, face their own set of challenges. Elevated interest rates can shrink the pool of eligible buyers, potentially leading to longer listing times and reduced offers. Sellers may need to adjust their expectations or consider creative financing options to attract buyers who are hesitant due to current borrowing costs.

So, what’s behind this disconnect between the Fed's actions and mortgage interest rates? The answer lies in several factors. First, while the Fed influences short-term policy rates, mortgage rates are largely determined by long-term bond yields. These yields are affected by investor sentiment, inflation expectations, and overall economic conditions. Despite the Fed's rate cuts, concerns about inflation and economic uncertainty can keep long-term yields—and consequently mortgage rates—elevated.

Additionally, lenders often factor in risk premiums when setting mortgage rates. Economic volatility or perceived risks in the housing market can lead lenders to maintain higher rates as a buffer against potential defaults or losses.

In our current market update, it's clear that both buyers and sellers must navigate these complexities carefully. Staying informed about economic trends and understanding how broader financial conditions impact real estate can empower individuals to make strategic decisions amidst fluctuating interest rates.

Ultimately, while high interest rates pose challenges for all parties involved in real estate transactions, they also underscore the importance of thorough research and strategic planning in achieving successful outcomes in today's market.

12/03/2025

Interest rates vs Tariffs Navigating the real estate market can be challenging, especially when external economic factors like interest rates and tariffs come into play. These two elements are crucial for both buyers and sellers, as they directly impact affordability, demand, and overall market conditions.

For buyers, interest rates are a significant consideration. Lower interest rates generally mean lower monthly mortgage payments, making homeownership more accessible. However, interest rates are not static; they fluctuate based on various economic indicators, including tariffs. When tariffs are imposed on imported goods, it can lead to increased costs for those products. This inflationary pressure can cause central banks to raise interest rates to control inflation, ultimately affecting mortgage rates.

Sellers also need to be aware of how tariffs and interest rates interplay. Higher interest rates can reduce the pool of potential buyers because higher borrowing costs make homes less affordable. This could lead to longer times on the market and potentially lower offers as buyers try to negotiate within their budget constraints. Conversely, lower interest rates can stimulate demand, allowing sellers to command higher prices and sell their properties more quickly.

The current market update shows a mixed bag influenced by these factors. Recently imposed tariffs have led to some inflationary pressures in certain sectors, prompting discussions about potential interest rate hikes in the near future. For buyers, this could mean acting sooner rather than later to lock in lower mortgage rates before any increases take effect. Sellers might find this an opportune moment to list their properties while buyer demand remains relatively high due to still-low interest rates.

Understanding the relationship between tariffs and interest rates is essential for both buyers and sellers in today’s real estate market. Keeping an eye on these economic indicators can help you make more informed decisions and better navigate the complexities of buying or selling a home. Whether you're looking to purchase your first home or considering selling your property, staying informed about these factors will give you a competitive edge in the ever-changing real estate landscape.

16/07/2024

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12/12/2023

In 1971, the interest rate for a mortgage was 7.33%. If you waited for interest rates to go down, you wouldn’t have purchased a home until 1993. You would have rented for 22 years waiting for rates to go down, meanwhile the value of real estate quadrupled. Don’t wait to buy real estate. Buy real estate and wait. Marry the house, date the rate.

In Summary for those who don’t trust forecasts: Nobody knows what will happen in 2024, and for people who can comfortably afford it, the age-old advice that buying a house is a good investment still holds true.”

11/12/2023

Come to our progressive open houses in Flying Horse and win one of three prizes.