With the biggest mortgage rate shift in four years, now is the time to consider your real estate goals. This quick read will help you understand what’s happening and how it impacts you as a homeowner or buyer. 

The Federal Reserve recently cut interest rates for the first time in four years. What does this mean for you as a homeowner or buyer in Fairfield County? 

Impact on Mortgage Rates  

While the Fed doesn’t directly control mortgage rates, it influences them. Mortgage rates, which hit highs of 7.79% last year, have now dropped to around 6.2%, giving buyers greater purchasing power and offering sellers more potential buyers. 

Buying Power & Affordability   

A 1% drop in rates can significantly boost your budget. Realtor.com reports that buyers now have an extra $70,000 in purchasing power for the same monthly cost as last year. This could mean $300-$340 in monthly savings. 

Will Rates Keep Dropping?  

Experts predict a gradual decline. Fannie Mae expects rates to dip to 6% by  year-end and 5.5% by 2025, creating more room for buyers. 

The ‘Lock-In’ Effect   

Sellers holding onto ultra-low pandemic-era mortgage rates have been slow to list, but with falling rates, we may see more homes hitting the market—great news for both buyers and sellers looking to make a move. 

Next Steps  

Fairfield County is poised for opportunity. Whether you're looking to sell and capture buyer demand or ready to capitalize on better rates as a buyer, now is the time to explore your options. Let’s talk about how these shifts impact your goals!