You’ve probably seen the headlines: The Fed cuts rates… and mortgage rates go up? Sounds confusing, right? Let’s break down what’s really happening and what it means if you’re thinking about buying or selling a home in today’s market.
National Real Estate News: The “Best” Time to Buy a Home
There’s an old real estate joke: the best time to buy a home was five years ago. The second-best time? Well, that depends on your goals—but timing does play a role.
According to Realtor.com, the week of October 12–18 is historically the sweet spot for buyers. Why? Because inventory is still relatively high after summer, but buyer demand begins to cool. That means more homes to choose from and less competition. If you’ve been waiting for the right moment, this might be it.
Mortgage Rates After the Fed Cut: Counterintuitive?
Here’s the big headline everyone is talking about: since the Fed rate cut on September 17, average 30-year mortgage rates have actually risen from 6.13% to 6.37%.
Wait… shouldn’t rates be going down? On the surface, yes. But here’s the truth:
- Markets anticipate change.
- Mortgage rates had already fallen from 6.53% to 6.13% in the first two weeks of September, before the Fed even made its move.
- By the time the Fed announced the cut, the bond market had already priced it in.
So while it may look “backwards,” the rise in rates isn’t all that surprising. [Source: Freddie Mac, Mortgage News Daily]
New Home Sales Spike: What’s Driving It?
Another big story: new home sales jumped to an annualized pace of 800,000 units in August—the highest since January 2022. That number was well above forecasts.
But was it because of falling mortgage rates? Not quite. Rates didn’t drop significantly until September. A more likely factor? Builders offered aggressive sales incentives and price cuts to move completed inventory. For buyers, that means more opportunities to snag a deal on a brand-new home. [Source: Census Bureau]
What This Means for Buyers and Sellers
- Buyers: If you’re shopping for a home, now is a unique window. You’ve got seasonal advantages (less competition), builders offering incentives, and rates still hovering in a manageable range historically.
- Sellers: Demand hasn’t disappeared. With inventory tightening and new home sales climbing, positioning your home correctly in this market is key to getting top dollar.
Final Thoughts
Real estate headlines can be confusing—but that’s why I’m here. Whether you’re looking to buy, sell, or just want to understand how today’s housing market impacts your plans, let’s connect.
👉 Check out the link in the comments for a deeper dive into local housing trends and listings in the Greater Houston & Fort Bend County area.
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