The housing market is at another crossroads. Goldman Sachs forecasts multiple rate cuts through 2025 and 2026, while a Fox Business video warns that lower rates could reignite home prices. Meanwhile, lending experts predict a shift in affordability this fall as market dynamics evolve. These stories underscore an ongoing tension: Will lower rates simply drive home prices higher, or can timing and strategy truly create opportunity? In this week’s blog, we explore this balance—and what it means for your clients.
Goldman Sachs Predicts Fed Will Cut Rates Five Times by End of 2026
Read the Full Story → Reuters
Goldman Sachs now projects three rate cuts by the Federal Reserve in 2025, followed by two additional cuts in 2026. These expectations align with recent shifts in inflation and employment data, which hint at a gradually cooling economy.
While the Fed has held off on cutting rates in 2024, strategists at Goldman see the slowing labor market and easing price pressures as indicators that policy loosening is on the horizon. They note this could begin as early as March 2025.
Such a rate path could provide needed relief to homebuyers by reducing mortgage rates. However, it may also reignite competition and push home prices up again if inventory remains constrained.
Expert Warns What Could ‘Ignite’ the Housing Market
In this Fox Business News video, housing experts discuss how recent price cooling could quickly reverse if interest rates drop. The concern? A sudden rate drop may spur demand that far outpaces supply, leading to another wave of price surges.
Experts point out that while affordability is a hot topic, rate drops don’t necessarily solve the issue—in fact, they may make it worse in the short term. More buyers competing for limited inventory drives prices up fast.
The video underscores the importance of watching the Federal Reserve’s next moves carefully. Lower mortgage rates may help with monthly payments, but they could reignite bidding wars just as quickly.
Will Buying a Home Be More Affordable This Fall?
Read the Full Story → CBS News
Lending experts say this fall could bring more favorable conditions for buyers, depending on rate trends and regional price movement. While mortgage rates remain elevated, small decreases could meaningfully impact monthly payments.
Experts suggest affordability may improve not only due to rate changes, but also from softened home prices in certain markets and seasonal slowdowns in competition. The fall season tends to offer less bidding pressure, which can benefit prepared buyers.
However, they caution that timing the market is tricky. Buyers are encouraged to evaluate local trends, get pre-approved, and stay flexible. Waiting too long could mean missing the affordability window if rates or prices shift unexpectedly.
Loan Officer Perspective
These stories are an excellent reminder that market shifts are opportunities. Rate cuts ahead mean we could see increased refi and purchase activity. It’s a great time to educate clients about getting pre-approved now, before demand spikes.
Keep clients focused on affordability, not just rate speculation. Help them understand the benefits of moving sooner if the right home and budget align.
Also, lean into partnership with agents and community builders—there’s momentum behind solutions, and you can be part of it.
Real Estate Agent Perspective
The market may feel challenging, but it’s also full of openings for savvy agents. This is the time to educate buyers about how rate drops could impact competition and prices.
Buyers are looking for clarity—give it to them. Share data, local inventory updates, and what lower rates could mean for their situation.
Also, keep clients informed about seasonal advantages. Fall may offer windows of opportunity when both rates and competition temporarily ease.
Home Buyer & Seller Perspective
Rate cuts may sound great, but what do they really mean for you? If you’re waiting for rates to drop, remember that prices may go up at the same time. Acting sooner could help you lock in value.
Sellers should be aware that motivated buyers are still out there, especially if affordability improves even slightly.
If you’re wondering what to do next, contact the professional who shared this post. They can walk you through your options based on today’s—and tomorrow’s—market.
Frank’s Thoughts
All three of these stories tie together to make me sit back and wonder what is really best. We all want affordability, but if rates float down again, will prices shoot up and cancel out that benefit? That’s the million-dollar question.
Can we fix this? Maybe. Maybe not. But does it even matter? What matters is keeping our head down and eyes forward. The truth is, housing has always had cycles, but the need for real estate never stops.
No matter what the Fed does or what policies get proposed, people will always need to buy, sell, and refinance. That’s the constant. Let’s stay focused and keep showing up.
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