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*What the Fed’s 25‑Basis‑Point Cut Means for Real Estate**

    The Federal Reserve’s recent 25‑basis‑point reduction in the federal funds rate is a welcome signal for the housing market, but its effects are far from straightforward. While the move may hint at a more favorable environment, the path to truly affordable homes remains complex.

    **Current Market Snapshot**

    - 30‑year mortgage rates are near two‑year lows, having fallen roughly 0.5–0.75 % in the past 60 days.

    - Most of that decline happened before the September 17 meeting, driven by a weak August jobs report that made a Fed cut almost inevitable.

    - After the announcement, rates stayed flat or edged higher, showing that the market had already priced in the cut.

    - Home sales are still well below normal, with many buyers staying on the sidelines due to high prices and rates.

    - Sellers are uncertain about how much to lower prices or what incentives to offer to move inventory.

    **Why the Fed Cut**

    The Fed’s dual mandate—maximum employment and stable prices—guided the decision. Inflation sits at 2.9 %, just above the target, while the August jobs data revealed cracks in the labor market. Chair Jerome Powell emphasized that there is no “risk‑free path” forward; the Fed will continue to monitor monthly data and may cut rates again, with two more cuts projected for the year.

    **Impact on Mortgage Rates and Housing**

    - A Fed cut can lower the federal funds rate, which in turn can reduce mortgage rates, but the relationship is not one‑to‑one.

    - Continued economic slowdown can lower inflation expectations, potentially easing mortgage rates further.

    - If the Fed cuts twice more this year, mortgage rates could decline, but the magnitude is uncertain.

    **Actionable Advice**

    Given the volatility of the past 24 months, waiting for future cuts is risky. Instead:

    1. **Assess the current data**—interest rates, inventory levels, and local market trends.

    2. **Consult experts**—real‑estate professionals and mortgage advisors can help you spot opportunities.

    3. **Act now**—there are still favorable conditions for buyers and sellers alike.

    **Contact**

    Chris Hallows, Branch Manager & Senior Mortgage Advisor, Benchmark Mortgage Flagstaff

    Website: [ChrisHallows.Benchmark.us](http://ChrisHallows.Benchmark.us)

    Phone: 928‑707‑8572

    Flagstaff Office: 824 W Rte 66 Suite A‑3

    NMLS 306345, Ark‑La‑Tex Financial Services, LLC NMLS 2143 | Equal Housing Lender