The Federal Reserve announced a 50 basis point (0.5%) rate reduction.

Rihards Gederts - Elegran | Forbes Global Properties This is a long-awaited rate cut - the first in 4-years and the largest rate cut since 2008.What could it mean for Mortgage Rates and NYC Real Estate moving forward? Impact on Mortgage Rates: Although recent and expected rate cuts are already factored into the current mortgage market, the primary influence on future rate movements will come from the Fed’s updated dot plot and projections. Because the updated dot plot was fairly in line with prevailing market expectations, substantial decreases in interest rates will likely not occur. Instead, mortgage rates should continue to decline gradually as the market responds to anticipated future rate cuts and more economic data is released in the coming weeks and months. Importantly, mortgage rates will NOT decrease by half a percent overnight in response to the Fed's decision. By 2025, I foresee mortgage rates continuing to trend lower, which will likely fuel a more competitive spring market, creating favorable opportunities for both buyers and sellers. Advice for Buyers & Sellers: For buyers who are financially ready and find a suitable property, now could be a strategic time to act. The option to refinance in the future as rates drop offers a clear advantage, providing today’s buyers with a first-mover edge. Those waiting until 2025 for lower rates, post-election clarity, or greater economic certainty may face a more competitive and potentially pricier market as increased buyer demand is expected. Sellers who need to sell imminently should price their homes competitively - and come to market ASAP to take advantage of the fall market. Waiting until late winter or spring of 2025 may be more beneficial for sellers without immediate urgency, as we anticipate stronger market activity and increased competition, partly due to continued decreasing mortgage rates. Expectations for Fall & Winter Sales: I expect the winter market to be more active than usual, setting the stage for a vibrant spring season. As interest rates gradually decline, more homeowners who have been holding onto their properties due to higher rates will return to the market, increasing inventory. This shift, combined with evolving buyer needs, could drive a significant transaction boom over the next 12-18 months, potentially rivaling the surge we saw in late 2020 into 2021. Importantly, many of those sellers would also become buyers, so any increase in supply will largely come with a commensurate increase in demand, plus bringing other first-time buyers into the market. Net-net, I expect demand to rise faster than supply as rates drop, which will keep an upward pressure on home prices. If you would like to chat about the most recent market activity, feel free to contact us at info@elegran.com or connect with one of our Advisors.   About Us Welcome to Elegran | Forbes Global Properties, where our mission is to revolutionize the world of real estate. Founded in 2008 by Michael Rossi, our journey began with an unwavering drive for motivation, innovation, and a genuine care for our clients. As an independently owned brokerage, we pride ourselves on our elite team of "advisors," offering a personalized touch that goes above and beyond the traditional real estate experience. Armed with robust data insights, we empower our clients to make informed decisions that lead to success. Distinguished as the exclusive member of the invitation-only Forbes Global Properties network in NYC, Elegran proudly stands at the forefront of excellence. This exclusive partnership broadens our horizons, enabling us to connect buyers, sellers, and investors with extraordinary luxury properties not only in New York City but across the globe. Our passion lies in turning your real estate dreams into reality, and we are committed to providing exceptional service at every step of the journey. Are you ready to experience the Elegran difference? Dive into the possibilities at www.elegran.com and embark on an unforgettable real estate adventure with us.

MORE