The Federal Reserve met this week and did not raise or lower the Federal Funds rate for the fourth consecutive meeting. In 2024, there were three interest rate cuts: 0.5% in September, 0.25% in November and 0.25% in December. There are rumors and predictions that the Fed will have two interest rate cuts sometime in 2025. 

Before I tell you why I think this matters- The Federal Funds rate is separate from mortgage rates. But they often mirror each other. And sometimes they go opposite directions. You should consult a trusted lender for more details and to talk through your specific circumstances if you’re looking for a specific mortgage rate. Thankfully, there’s a lot of them! Jenny King or Mike Fitzpatrick with Legendary Mortgage, Scott Tripp with South State Bank, Max Neubauer with Neighborhood Loans, Sara Ellis with American Financial Network, Ashley Bartol with Southern Trust Mortgage, Chris Richardson, Amanda Phillips or Dana Meadows with Movement Mortgage, Ryan Leonard or Lexy Millen with EMM Loans and the list continues! These are amazing professionals who know the business inside and out and can help you more.  

Why does the Federal Reserve’s decision matter?

This decision signals that inflation is still a major concern and that the FED is still assessing the impact of tariffs on the economy at large. 

If I’m interested in Mortgage Rates, what should I be paying attention to? 

I’d encourage you to talk to a trusted lender. Then, I’d pay attention to 10 Year Treasury Bonds. Other factors- inflation, market perceptions of a good or bad economy, housing market conditions for supply and demand and overall market volatility (or stability) and certainty (or uncertainty). 

My prediction for the Grand Strand market- we will continue to have more supply and we soon will officially teeter in to a buyer’s market. We are already firmly in a buyer’s market for condos and townhomes. Single family homes are not far behind. With interest rates staying where they are, homes will sit on the market longer and give buyers more options. As sellers compete for buyers, prices will drop or incentives will increase. Outside of prices dropping, there will continue to be a substantial number of Expired and Withdrawn listings. New construction will lead the way with price drops and incentives. Reluctantly, sellers who need to sell an existing home will do the same. In any market, a well priced and well marketed home will sell. In the coming market, a home that is not well priced and advertised well will not sell. Please note, I didn’t say sell for less. I said it won’t sell. 

Is now a good time to buy? Probably, that depends on a lot of factors and your specific situation. If interest rates drop substantially in the future, there will be a market boom with pent up demand gobbling up supply. The best properties will experience multiple offers and prices will rise due to the impact of supply and demand. When will that happen? Not sure. Will it happen at all? Possibly not. In 5 years, the best time to buy will probably be 5 years ago so that means today is a good time to buy a house. We’d love to help you develop your specific strategy and put together a team of trusted people: lender, closing attorney, home inspector and contractors to help you achieve your goals.