Jenn Davida

  • Home
    • Giving Back
  • Meet Jenn
    • Why Choose Jenn Davida
    • Selecting A Realtor
    • Testimonials
  • Buying a Home
    • Browse Homes
    • Communities
    • Get Pre-Approved
    • Mortgage Calculator
    • Military Benefits
    • VA Home Loans
    • Luxury Inventory
  • Selling A Home
    • Staging Your Home
    • Staging Photos & Video
    • Home Value
    • Luxury Marketing
    • Video
    • Short Sale
      • Do I Qualify?
      • What to Expect
  • YouTube
  • Contact
  • Blog & More
    • Newsletter Sign-up
    • Market Insights
CALL ME

Giving Back

One Closing At A Time

Learn More

Military Benefits

Valuable benefits designed to help service members and their families.

Learn More

How the Federal Reserve’s Next Move Could Impact the Housing Market

How the Federal Reserve’s Next Move Could Impact the Housing Market

September 4, 2024 by Jennifer Davida

How the Federal Reserve’s Next Move Could Impact the Housing Market Simplifying The Market

Now that it’s September, all eyes are on the Federal Reserve (the Fed). The overwhelming expectation is that they’ll cut the Federal Funds Rate at their upcoming meeting, driven primarily by recent signs that inflation is cooling, and the job market is slowing down. Mark Zandi, Chief Economist at Moody’s Analytics, said:

“They’re ready to cut, just as long as we don’t get an inflation surprise between now and September, which we won’t.”

But what does this mean for the housing market, and more importantly, for you as a potential homebuyer or seller?

Why a Federal Funds Rate Cut Matters

The Federal Funds Rate is one of the key factors that influences mortgage rates – things like the economy, geopolitical uncertainty, and more also have an impact.

When the Fed cuts the Federal Funds Rate, it signals what’s happening in the broader economy, and mortgage rates tend to respond. While a single rate cut might not lead to a dramatic drop in mortgage rates, it could contribute to the gradual decline that’s already happening.

As Mike Fratantoni, Chief Economist at the Mortgage Bankers Association (MBA), points out:

“Once the Fed kicks off a rate-cutting cycle, we do expect that mortgage rates will move somewhat lower.”

And any upcoming Federal Funds Rate cut likely won’t be a one-time event. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“Generally, the rate-cutting cycle is not one-and-done. Six to eight rounds of rate cuts all through 2025 look likely.”

The Projected Impact on Mortgage Rates

Here’s what experts in the industry project for mortgage rates through 2025. One contributing factor to this ongoing gradual decline is the anticipated cuts from the Fed. The graph below shows the latest forecasts from Fannie Mae, MBA, NAR, and Wells Fargo (see graph below):

No Caption ReceivedSo, with recent improvements in inflation and signs of a cooling job market, a Federal Funds Rate cut is likely to lead to a moderate decline in mortgage rates (shown in the dotted lines). Here are two big reasons why that’s good news for both buyers and sellers:

1. It Helps Alleviate the Lock-In Effect

For current homeowners, lower mortgage rates could help ease the lock-in effect. That’s where people feel stuck within their current home because today’s rates are higher than what they locked in when they bought their current house.

If the fear of losing your low-rate mortgage and facing higher costs has kept you out of the market, a slight reduction in rates could make selling a bit more attractive again. However, this isn’t expected to bring a flood of sellers to the market, as many homeowners may still be cautious about giving up their existing mortgage rate.

2. It Should Boost Buyer Activity

For potential homebuyers, any drop in mortgage rates will provide a more inviting housing market. Lower mortgage rates can reduce the overall cost of homeownership, making it more feasible for you if you’ve been waiting to make a move.

What Should You Do?

While a Federal Funds Rate cut is not expected to lead to drastically lower mortgage rates, it will likely contribute to the gradual decrease that’s already happening.

And while the anticipated rate cut represents a positive shift for the future of the housing market, it’s important to consider your options right now. Jacob Channel, Senior Economist at LendingTree, sums it up well:

“Timing the market is basically impossible. If you’re always waiting for perfect market conditions, you’re going to be waiting forever. Buy now only if it’s a good idea for you.”

Bottom Line

The expected Federal Funds Rate cut, driven by improving inflation and slower job growth, is likely to have a positive, albeit gradual, impact on mortgage rates. That could help unlock opportunities for you. When you’re ready, connect with a local real estate agent so you’re prepared to take action.

Source: Keeping Current Matters

Related Posts:

  • How Inflation Affects the Housing Market
    How Inflation Affects the Housing Market
  • Why Mortgage Rates Could Continue To Decline
    Why Mortgage Rates Could Continue To Decline
  • How Inflation Affects Mortgage Rates
    How Inflation Affects Mortgage Rates
  • What Mortgage Rate Are You Waiting For?
    What Mortgage Rate Are You Waiting For?

Filed Under: Real Estate News Tagged With: real estate

Your Real Estate Solution Newsletter

Join today to receive a monthly e-newsletter that is sure to be packed with fresh and relevant information!

What’s My Home Worth?
(Featured by HomeBot)
  • – Home assessment
  • – Track value progress
  • – Monitor your mortgages

Search the Largest
Collection of New Homes

Blog Categories

Quick Search

Local & National Participation

  • The Institute For Luxury Home Marketing Member Seal

  • St Pete Chamber

  • Florida Realtors

  • Aaron's House

  • Pace

  • American Cancer Society

  • Aspca

  • BigCatWildlifeRescue

  • Realtor

  • Hope

  • Susan G Komen

  • PascoStandDown

  • Pinellasrealtor

  • Westpasco

  • Westpascocc

  • Asap

  • Connectionsjobdev

  • Vw

  • Dali Museum

  • CDPE

  • Mrp

  • Gold Writiting Grey Block Large PNG

  • Verternas_Alternative

  • WPBA LOGOS

CLIENT REVIEWS

  • Zillow 5 Star Review  Jenn Davida is by far the best realtor in our market area. I foregoed the lowest commission offered to us to ensure we got the best experience and lots of... read more clear communication. We are 200% satisfied with the process and Jenn's results. If you want a pleasant experience and best result, I'd strongly recommend Jenn Davida.

    zillow logo
    zuser20170219141859154
    January 12, 2022
  • Zillow 5 Star Review  Jenn was amazing to work with when purchasing my new home. She was so helpful with every detail and was always available for questions. The home even closed a few... read more days early.

    zillow logo
    Caroline Turke
    September 3, 2021
  • Zillow 5 Star Review  Jenn Davida secured us our perfect home during the craziest market ever! She was able to answer every question we had quickly and accurately, she guided is through our... read more aggressive negotiations with grace and confidence which helped us land our dream home in the area we needed to be in. Professional, kind and connected. There are not enough kind words to express our gratitude for her help.

    zillow logo
    Mary Miller
    July 28, 2021
  • Zillow 5 Star Review  This is the second property that I've bought leveraging Jenn's real estate prowls! I literally contacted Jenn at 9PM at night when I saw a listing on the market in... read more the specific neighborhood we were looking at and she managed to squeeze me into her schedule to view the house the next day. I had an offer prepared that night and was already in a bidding war! Jenn helped me to craft a competitive offer and when I snoozed on my counteroffer in time, she helped convince the seller to make me the formal backup offer. It worked out because we ended up going under contract! You would think it would be smooth sailing from there but we hit several roadblocks during the inspection period and Jenn was a google master trying to find experts to advise us for each issue we uncovered. When our appraisal came in significantly less than we felt should be the right value, she gave me different strategic advise for how to move forward. In the end we were able to close on the house that my husband and I are in LOVE with just in the nix of time before welcoming our first baby. While this was my experience with buying this specific home, the reason I continue to use Jenn is because she is a bubbly personality, super professional, and makes herself available to help her clients achieve their goal (whether selling or buying). If you want an agent that is fighting for a house as if it was her own...than Jenn is your gal. If you want an agent that will entertain all of your questions, no matter how stupid....than Jenn is your gal. If you want an agent that will give you 200% when you're giving 100%...than Jenn is your gal. If you are looking for an agent to sell or buy a home, please do not look further than Jenn. I've used her, my friend has used her, and my cousin has used her....clearly it goes to show that we are all fans and she has managed to help each of us find our dream home. I already plan on using Jenn to sell my condo!

    zillow logo
    Valarie Mahabir
    April 17, 2021
  • Zillow 5 Star Review  I’ve dealt with Jen, and it’s hard to find a better Agent than the Jen in the Tampa market these days. She has been able to answer all my questions... read more without having to wait days or weeks to get an accurate response. She always connect me with the contacts needed to get closer to my investing goals. I Appreciate you so much. and wish you many more successes.

    zillow logo
    parsa11495
    March 16, 2021
  • Zillow 5 Star Review  Jenn is the consummate professional! She was with me every step of the way! She truly cares about her clients & their needs/wants! Utilizing her knowledge and experience led me... read more to the perfect hone. Nobody works harder than Jenn!

    zillow logo
    bcorley55
    January 28, 2021
  • Zillow 5 Star Review  Jenn was with me for all the steps of purchasing a new construction home. During the construction process we stayed in touch even though it was not much to... read more discuss. Still, it's nice to know somebody is there looking out for your interests. She was there during the walkthrough to help point out the imperfections that needed to be corrected. She was at closing to review the paperwork and explain exactly what I was signing. Jenn is generally easy to reach but if she's busy she never fails to get back to you and communication with her is very easy.

    zillow logo
    mthornak
    January 22, 2021
  • Zillow 5 Star Review  Jenn gave me honest advice and guidance on my home sell. She is a true professional that believes in telling people about the entire picture and process. It is a... read more wonderful experience to sell a home with Jenn because she makes herself available for questions and concerns, provides detailed instructions on the steps moving forward, does an excellent job negotiating and provides the best support team available. The professional photographer that she hired was amazing and they were able to get beautiful pictures of the home. Jenn Davida is a real gem!

    zillow logo
    zuser20140427051520200
    December 11, 2020
  • Zillow 5 Star Review  Jenn Davida is one of a kind..she is personable, knowledgeable, patient and kind. We are so.grateful to her for making our home buying and selling dreams come true. Thank you... read more Jenn for being you!!!

    zillow logo
    misslondont
    November 19, 2020
  • Zillow 5 Star Review  Five Star Realtor! My wife and I selected Jenn Davida to list a lakefront property in Citrus Park, that we planned to build a custom home on. Jenn implemented a... read more solid marketing strategy, negotiated offers, and closed the deal at the full listing price in less than ninety days! She is dedicated, detail-oriented, and driven. We highly recommend Jenn Davida for your real estate solutions.

    zillow logo
    zuser20160924101425168
    November 7, 2020

Communities

St. Petersburg

South Tampa

Trinity

Pasco

North Pinellas

Beaches

Luxury

Waterfront

Golf Communities

New Construction

55+ Communities

Foreclosures

© 2025 Jenn Davida · Real Estate Solutions · Powered by Local Real Estate Solutions

Terms and Conditions - Privacy Policy