Fall is here! Between the kids’ sports schedules, birthday celebrations, and cooler days ahead, I’m feeling grateful for this new season. ✨

On the personal side, October is special — it’s my birthday month 🎂! I’m also planning something exciting for my 50th next year, tied to giving back to the community. Stay tuned for more on that soon!

Change is in the air — in life and in real estate 🏠 — and this week’s market headlines are a perfect example of how things aren’t always what they seem.

🏦 The Fed Cut Rates… So Why Did Mortgage Rates Go Up?

You may have seen the headline:

“Fed cuts rates — but mortgage rates still rise!”

Sounds confusing, right? Here’s what’s really happening.

On September 17, the Federal Reserve cut short-term interest rates by 0.25%. Yet since then, average 30-year mortgage rates rose slightly, from 6.13% to 6.37%.

The key is that markets move on expectations. The bond market had already priced in those rate cuts weeks earlier, after weak August job data and revised reports. So when the Fed finally made its move, the news was already baked in.

In fact, mortgage rates had already dropped from 6.53% to 6.13% before the Fed meeting. That’s the market anticipating the move — not reacting to it.

🧠 Lesson: Don’t panic over short-term rate bumps. They’re often just the market adjusting to what it already knew was coming.

🏠 What’s Happening in the Housing Market?

• New Home Sales: Jumped 21% in August to an annualized 800,000 units — the strongest level since January 2022.

• Existing Home Sales: Steady at 4 million units, reflecting contracts signed when rates were higher.

➡️ Expect existing home sales to rise in coming months as buyers return with more favorable financing.

📅 Timing Tip: Best Week to Buy

According to Realtor.com, October 12–18 is historically the best week for buyers each year. Why?
📈 More inventory
💰 Less competition
🏡 Better negotiating conditions

If you’ve been waiting for a sign, this might be it.

📈 Market Outlook

• Fed Funds Rate: Now 4.00–4.25%

• The market expects another 0.25% cut on October 29, and possibly one more on December 10.

• Mortgage rates may stay a bit volatile short-term, but are likely to trend lower if inflation keeps cooling.

🎯 Translation: Buyers should stay alert — the next few months could bring more opportunity.

💡 The Bigger Picture

Markets swing and correct, but they always return to balance.

Right now, household formation is lagging — young adults are staying home longer due to affordability. And existing home sales per capita are well below the 2012–2019 average.

As rates ease and affordability improves, we’ll see more first-time buyers, more move-ups, and more transactions.

“Home sales have been sluggish due to high rates and limited inventory. But as rates fall and listings grow, sales should rise.”
— Lawrence Yun, Chief Economist, NAR

✨ Final Thoughts

Markets — like seasons — change. 🍁
What looks uncertain today often becomes opportunity tomorrow.

If you’re wondering how these shifts affect your plans — whether you’re looking to buy before rates change or sell while demand is strong — let’s connect. I’ll help you navigate with confidence.

Email me at kimonerealtor@gmail.com simply reply here and we’ll start the conversation.