*                                
                                
                                *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                            
 
                         
                                             
                                                         
                                                         
                                             
                                                         
                                                         
                                                         
                     
                 
                         
                         
                        