Mortgage rates are finally heading in the right direction – and buyers are starting to jump back in.
According to the data, buyer demand picked up considerably once mortgage rates hit a new low for 2025. The Mortgage Bankers Association (MBA) reports that applications for home loans were up 23% compared to the first week of September last year.
If you've been waiting to sell, or your listing recently expired because the market was slower than you hoped it would be, now's the time to reconsider your move. Buyer demand is the highest it's been since July – and you don't want to miss this window.
The Federal Reserve (the Fed) meets this week, and expectations are high that they'll cut the Federal Funds Rate. But does that mean mortgage rates will drop? Let's clear up the confusion.
Right now, all eyes are on the Fed. Most economists expect they'll cut the Federal Funds Rate at their mid-September meeting to try to head off a potential recession.
According to the CME FedWatch Tool, markets are already betting on it. There's virtually a 100% chance of a September cut. And based on what we know now, there's about a 92% chance it'll be a small cut (25 basis points) and an 8% chance it will be a bigger cut (50 basis points):
You've been waiting for what feels like forever for mortgage rates to finally budge. And last week, they did – in a big way.
On Friday, September 5th, the average 30-year fixed mortgage rate fell to the lowest level since October 2024. It was the biggest one-day decline in over a year.
According to Mortgage News Daily, this was a reaction to the August jobs report, which came out weaker-than-expected for a second month in a row. That sent signals across the financial markets, and then mortgage rates came down as a result.
Basically, we're seeing signs the economy may be slowing down, and as certainty grows in the direction the economy is going, the markets are reacting to what is likely ahead. That historically brings mortgage rates down.
But this isn't just about one...
August is usually a month where home buyers with young children close their purchases and get settled before school starts. It is also a month in which sellers who didn't sell their properties during the peak summer selling season consider their next options. Often, for those who really need to sell, lowering the asking price can be the answer. For others, taking their property off the market may make more sense. However, in 2025, the August Bend home sales reflected a mixed market with prices up, closings up, inventory up and days on market up.
When August 2025 is compared with August 2024, th...