The Fed Cut Rates — Should You Act Now or Wait?

The Federal Reserve just lowered interest rates by 0.25%, the first cut this year. It may not sound dramatic, but it’s a signal that borrowing costs are starting to ease — and it has everyone in real estate asking the same question: is it smarter to make a move now, or hold out for the possibility of more cuts later?

Buying in Today’s Market

For buyers, the rate cut means mortgages are already a little more affordable than they were just weeks ago. That translates to lower monthly payments and, for many, a chance to qualify for homes that previously felt out of reach. Locking in a rate now offers certainty — you know what your payment will be, and you don’t have to gamble on where the market heads next.

But the Fed has hinted at more cuts, and that’s tempting. If rates drop further, borrowing could become even cheaper. The flip side is that waiting could also bring more competition, as other buyers flood in once conditions improve.

Selling with Confidence

For sellers, conditions remain challenging as we haven't seen a big change in buyer activity in our local area. High inventory means buyers have plenty of options, and homes are taking longer to move. While the Fed’s cut could eventually build momentum, we haven’t seen a surge in buyer activity yet.

That means pricing and presentation are more important than ever. Homes that are well-prepared and priced competitively are the ones attracting interest. If additional cuts come later this year, demand may improve — but waiting also means competing with more listings if other homeowners jump in at the same time.

For Homeowners Holding Steady

Even if you’re not planning to buy or sell, the cut still matters. It supports home values by keeping overall demand from softening too much, and it may present opportunities to refinance if your current rate is higher. If more cuts come, those refinance options may get even better — but the first opportunities are already opening up.

The Takeaway

The Fed’s rate cut is a step in the right direction for affordability, but the impact on buyer activity hasn’t shown up in our local market yet. With inventory high and homes taking longer to sell, buyers today may benefit from more negotiating power, while sellers need sharp pricing to stay competitive.

More cuts are possible in the coming months, but nothing is guaranteed. Acting now brings certainty in today’s conditions, while waiting could mean better financing — or more competition. The right move depends on your goals, your timeline, and your comfort level.

If you’d like to talk through how today’s market trends apply to your home or your plans, we’re here to help.