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Fed cuts rates...mortgage to 3 year lows...prices coming down but not "correcting"
Posted on 9/18/25 at 11:14 am
Posted on 9/18/25 at 11:14 am
The vast majority of people who have been "locked out" of the real estate market due to affordability are still nowhere close to where they want to be to come off he sidelines. folks have been waiting since 2020 for prices to come down. It won't happen in an significant way.
13
Posted on 9/18/25 at 11:20 am to sidewalkside
Baw prices ain't coming down. There's still more demand than supply.
Posted on 9/18/25 at 11:20 am to sidewalkside
When did they cut the rates?
Posted on 9/18/25 at 11:21 am to bad93ex
Yesterday by a .25
Posted on 9/18/25 at 11:22 am to bad93ex
They cut fed funds rate yesterday by a quarter of a point
The mortgage rates general came down in anticipation of that the week before.
The mortgage rates general came down in anticipation of that the week before.
Posted on 9/18/25 at 11:22 am to SDVTiger
quote:
Yesterday by a .25
and after one day
quote:
prices coming down but not "correcting"
Posted on 9/18/25 at 11:28 am to sidewalkside
Don’t decreases in rates increase home prices?
Posted on 9/18/25 at 11:28 am to REB BEER
Then why are homebuilders cutting prices?
National Association of Homebuilders
quote:
HMI Key Findings: September 2025 Builder confidence in the market for newly built single-family homes was 32 in September, unchanged from the August reading.
Here are the readings for the three HMI indices in September:
-Current sales conditions held steady at 34.
-Sales expectations in the next six months rose two points to 45.
-Traffic of prospective buyers posted a one-point decline to 21.
In a sign that the housing market remains soft, the latest HMI survey also revealed that 39% of builders reported cutting prices in September, up from 37% in August and the highest percentage in the post-Covid period. Meanwhile, the average price reduction was 5% in September, the same as it’s been every month since last November. The use of sales incentives was 65% in September, essentially unchanged from 66% in August.
National Association of Homebuilders
Posted on 9/18/25 at 11:30 am to SaintsTiger
quote:
Then why are homebuilders cutting prices?
I don't know. I'm just repeating what I've heard.
Posted on 9/18/25 at 11:50 am to sidewalkside
quote:A $400,000 house will require a considerable down payment. That will be a hindrance to many would-be buyers.
The vast majority of people who have been "locked out" of the real estate market due to affordability are still nowhere close to where they want to be to come off he sidelines. folks have been waiting since 2020 for prices to come down. It won't happen in an significant way.
Posted on 9/18/25 at 11:54 am to sidewalkside
quote:
The vast majority of people who have been "locked out" of the real estate market due to affordability are still nowhere close to where they want to be to come off he sidelines. folks have been waiting since 2020 for prices to come down. It won't happen in an significant way.
The big problem is that there are a frickTON of mortgages out there (I did some math on this a while back to get a rough estimate, too lazy to look it up no though
) on homes valued at pre-2019 prices and with sub-5% interest rates. While property values have increased, the combination with high interest rates means that a lot of homeowners looking to make even a lateral move will face a new mortgage that can be 2x higher. Without some sort of big event (like a recession or housing crash), we're not going to see housing* sales get back into a strong position for a long time.
*-real estate is local, so what happens, by how much and when can vary from market to market
Posted on 9/18/25 at 11:59 am to sidewalkside
Prices of the homes will not come down with lower interest rates, however the monthly note will, making homes more affordable.
Posted on 9/18/25 at 12:37 pm to SaintsTiger
quote:
Then why are homebuilders cutting prices?
The market is correcting (as it always does) and that takes time.
Posted on 9/18/25 at 12:39 pm to Bard
quote:
While property values have increased, the combination with high interest rates means that a lot of homeowners looking to make even a lateral move will face a new mortgage that can be 2x higher.
Not necessarily. They likely had some equity in the home before depending on how long they've owned it, and the increase in value would also come to them as cash, so they would have a considerable down payment to place for a lateral move.
This post was edited on 9/18/25 at 12:40 pm
Posted on 9/18/25 at 1:22 pm to Chicken
$400,000 doesn't get you very much, especially is areas you actually want to live.
Before yesterday's cut, rates were actually right below the longterm average.
I would much rather have cheaper asset prices than lower rates. If you pay shite off faster rates are not as much of a concern.
Before yesterday's cut, rates were actually right below the longterm average.
I would much rather have cheaper asset prices than lower rates. If you pay shite off faster rates are not as much of a concern.
This post was edited on 9/18/25 at 4:34 pm
Posted on 9/18/25 at 1:26 pm to GREENHEAD22
quote:
$400,000 doesn't get you very much
Where are you talking about?
Posted on 9/18/25 at 1:32 pm to Bard
quote:
The big problem is that there are a frickTON of mortgages out there (I did some math on this a while back to get a rough estimate, too lazy to look it up no though ) on homes valued at pre-2019 prices and with sub-5% interest rates. While property values have increased, the combination with high interest rates means that a lot of homeowners looking to make even a lateral move will face a new mortgage that can be 2x higher.
This.
I bought my home in 2018 and have an interest rate mid-3. There's estimates that my home could sell today for 35 to 40% more, than what I paid for it. Some higher estimates even show 50% more. But then what would I get in return?
I'm sitting right now until I'm ready to mostly downsize and move back to Louisiana.
This post was edited on 9/18/25 at 1:34 pm
Posted on 9/18/25 at 1:34 pm to sidewalkside
The people that control supply like high prices. So of course supply will still constrained. More money and less risk by selling fewer houses for higher price.
There’s no such thing as *new* affordable housing.
There’s no such thing as *new* affordable housing.
Posted on 9/18/25 at 1:36 pm to Chicken
quote:
A $400,000 house will require a considerable down payment. That will be a hindrance to many would-be buyers.
3.5% is considerable?
It’s not 20% anymore chief
Posted on 9/18/25 at 1:40 pm to ragincajun03
Same here.
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