The housing market continues to keep everyone on their toes. After the Federal Reserve cut interest rates in September, many expected mortgage rates to follow suit. Instead, a strong jobs report in October sent mortgage rates climbing to 6.44%, up from 6.12% just a month earlier. While this spike surprised some, there’s still plenty of good news on the horizon.
Good News for Buyers and Refinancers
Mortgage rates today are still lower than last year, and experts predict they’ll drop further as we move into 2025. This could be the perfect window to start preparing for your next home purchase or refinance opportunity. One of our clients recently secured a 6.2% adjustable-rate mortgage for their 3-bedroom, 2-bath family home right here in Scottsdale. With flexible options in place, they’re set to capitalize if rates dip further.
4 Key Housing Market Insights
1. Mortgage Rates Could Fall Further
Economic forecasts suggest the 30-year fixed mortgage rate could drop to around 6% by early 2025. Lower rates can increase your buying power, reduce loan costs, and make refinancing more appealing. But remember, falling rates also tend to attract more buyers, which can lead to increased competition for desirable homes.
2. Inventory Is Still Tight
A nationwide housing shortage continues to impact the Scottsdale market. Many homeowners are reluctant to sell because they’re locked into historically low mortgage rates. However, if rates drop significantly, we could see a surge of new listings and increased activity in the construction of new homes.
3. Home Prices Remain High
Despite lower interest rates, home prices are expected to stay elevated. Limited inventory and high demand are keeping prices steady, even as other economic factors shift. For buyers, this means careful budgeting and prioritizing what matters most in a new home.
4. Housing Inflation Is Slowly Cooling
The good news is that housing-related costs have eased from 8% inflation to around 5%. While this is a step in the right direction, experts don’t expect a dramatic decline in the near future. Buyers and renters alike may find only modest relief.
Your Next Move: Stay Financially Ready
The key to navigating this unpredictable market is preparation. Whether you’re looking to buy, sell, or refinance, staying financially ready will position you for success. Here’s how:
Boost Your Credit Score: A higher credit score can help you secure lower mortgage rates.
Reduce Debt: The less debt you carry, the more you can borrow for your dream home.
Don’t Wait for the Perfect Moment: Timing the market is tricky; focus on finding the right home and locking in a rate that works for you.
Why Scottsdale Is Still a Hot Market
Scottsdale’s luxury lifestyle, year-round sunshine, and outgoing community keep it one of the most desirable places to live. Whether you’re a first-time homebuyer, an investor, or looking to upgrade your lifestyle, the opportunities are endless. Danny and his team have been serving the Scottsdale community for 20+ years. Let us help you find the perfect home or position your property to sell quickly in this ever-changing market.