October Market Update and Newsletter

What’s Really Happening with Interest Rates and Housing

The Federal Reserve recently lowered interest rates by a quarter of a point. While this was big news in the financial world, it’s important to understand what it really means for the housing market. A common misconception is that when the Fed reduces rates, mortgage rates will automatically come down. In reality, that isn’t always the case.

Here’s a major reason why: mortgage lenders usually anticipate the Fed’s moves and adjust their rates ahead of time. That’s exactly what happened this time. Mortgage rates had already dipped before the Fed made its announcement. Then, when they dropped it 25 basis points instead of a hoped for 50, and the inflation numbers came in higher than expected, it rattled the economy, and mortgage rates actually rose again. In recent weeks, we’ve seen rates fluctuate – rising, falling, and then rising again – making it feel like a rollercoaster ride for anyone watching closely.

This uncertainty has created a very dynamic housing market. On the one hand, some homes are still receiving multiple offers, but these situations are happening less and less frequently. And more homes are sitting on the market longer, and we’re even seeing buyers successfully negotiate contingencies into their contracts. Again, something that wasn’t very common during the ultra-competitive years of 2020–2022, or even this spring. 

The pace of sales is another concern. If the current slowdown continues, total home sales for the year could fall back to levels not seen since the 1990s, although prices are holding steady. That’s a significant shift, and something we’ll be watching closely.

If you’re considering selling, it’s essential to understand what today’s buyers expect. Homes need to be priced competitively, as overpricing will only cause them to sit on the market. Presentation is equally important as buyers want to see properties that are fresh, clean, and move-in ready. Staging can also make a big difference by highlighting a home’s best features and creating a strong first impression. Finally, accessibility matters; the easier it is for buyers to view your home, the better your chances of receiving an offer.

For buyers, the current market offers some unique opportunities. With homes staying on the market longer, there’s more room to negotiate terms, include contingencies, and take a little extra time to make thoughtful decisions, something we haven’t seen much of in the fast-paced markets of the past few years.

Adding to the uncertainty, the federal government shutdown began on October 1st. Right now, no one knows how long it will last. A short shutdown may not have a significant impact, but if it drags on, it could slow down certain aspects of the real estate process – such as mortgage underwriting, flood insurance, and even some verifications tied to government agencies. This could create delays for both buyers and sellers.

The real estate market is adjusting, and while we haven’t quite found our new “normal,” one thing remains true: preparation and strategy matter. If you’re considering making a move, let’s talk. I’d be happy to walk you through what’s happening right now, explain how it impacts your situation, and outline the steps you can take.

Five Eco-friendly Ideas for a More Sustainable Home

As the seasons change and we settle into fall, it’s the perfect time to think about ways to make our homes more eco-friendly. Sustainable living doesn’t have to mean big, expensive changes – it’s often the small, consistent habits that add up to a big impact. Here are five ideas to get started:

1. Switch to Energy-Efficient Lighting

If you haven’t already, replace old incandescent bulbs with LED lights. LEDs use up to 80% less energy and last significantly longer, resulting in both energy and cost savings. Bonus: they come in warm tones perfect for cozy fall evenings.

2. Reduce Water Waste

Simple swaps can make a big difference – install low-flow showerheads, fix leaky faucets, and only run dishwashers or washing machines with full loads. Collecting rainwater for outdoor use is another effective way to reduce water waste.

3. Choose Green Cleaning Products

Household cleaners often contain chemicals that are harsh on both our health and the environment. Opt for eco-friendly, biodegradable options—or make your own with vinegar, baking soda, and essential oils. They’re safer, affordable, and effective.

4. Embrace Smart Thermostats

Heating and cooling account for a significant portion of household energy use. A smart thermostat helps regulate temperatures more efficiently, adjusting automatically when you’re away. Over time, this small investment can drastically reduce energy consumption.

5. Compost and Recycle Smarter

Instead of tossing food scraps, start composting to reduce landfill waste and create nutrient-rich soil for gardens. Double-check your local recycling guidelines as well – recycling correctly ensures that more materials are actually reused.

Making your home more sustainable doesn’t have to be overwhelming. Start with one or two of these eco-friendly practices this month and build from there. Each choice – big or small – moves us closer to a healthier home and planet.

Recipe of the Month | Apple Cider Donut Bread

Recipe courtesy of Persnickety Plates