September Real Estate Roundup: What to Watch for This Fall

Fall is an exciting time in real estate – and not just because of all the recent positive news about rates! Kids have gone back to school, so parents have more time to home shop. The weather is crisp, fall landscaping is attractive, and sellers whose homes have stayed on the market awhile could see the year end coming and be ready to make a deal. 

Rates are still slowly trending downward (more on that below), but that doesn’t mean buyers should wait. Markets are unpredictable, except to say they’re always fluctuating. Additionally, clients who buy now can get a month or two of mortgage interest tax deductions next April rather than waiting a year. So, if your buyers are on the fence, I’d love to help give them the whole picture. 

The Fed Rate Cut 

The Federal Reserve has finally lowered its rate by .5% - even more than expected, with more possible rate cuts to come in 2024. This is definitely good news because it shows that inflation is trending downward and consumer confidence is gaining. But... 

Keep in mind that this doesn’t mean mortgage rates immediately drop. The “Fed rate” is not tied directly to mortgage rates; instead it’s the fee U.S. banks pay each other to borrow or loan money overnight. The rate cut does trickle down to products like credit cards, student loans and, yes, mortgages – but maybe not right away. But it’s a great sign of potential growth to come. I’m happy to talk about rates with you – just reach out! 

Here’s what else to look out for as fall begins. 

New, Higher Conforming Loan Limits 

You’ve probably already heard about conforming loan limits rising. The Federal Housing Finance Agency (FHFA) regulates Fannie Mae and Freddie Mac and set the limits, which are a dollar cap on the amount of a mortgage they will guarantee. The FHFA typically raises these limits every fall, according to home prices. As home prices increase or decrease, loan limits respond accordingly. Atlantic Bay is now honoring loans up to $795,000, up from $766,550, and we’ll keep an eye on any further announcements from the FHFA. 

Higher limits mean your clients can get a larger conventional loan while still benefiting from more flexible qualifying criteria and lower down payment options than with a jumbo loan, which can be tougher to qualify for because they’re not backed by Fannie and Freddie. 

However, jumbo loans can still be great for the right clients. Their rates can be better than Fannie and Freddie because jumbo loans aren’t subject to loan level price adjustments (LLPAs). Atlantic Bay can also offer adjustable rates (ARMs) with jumbo loans. 

Webinars and More 

Atlantic Bay is always working to keep you updated on industry news. We’ll host at least one more webinar before year-end. I’ll let you know as soon as details are finalized! 

I look forward to working with you this season!