Market Update: The Fed Holds Steady, But Change Could Be Coming

You’ve probably seen some chatter in the news lately—interest rates, inflation, trade policies, and even rumors about leadership changes at the Federal Reserve. It’s a lot to take in, especially if you’re thinking about buying, selling, or refinancing a home.

So here’s a quick breakdown of where things stand and what it could mean for the housing market.

The Fed Hit Pause (Again)

This week, the Federal Reserve met and kept interest rates right where they are. That part wasn’t a surprise. But what was interesting is that, for the first time in decades, two voting members disagreed with that decision.

That’s a rare move, and it could signal that a change in rate policy is coming in the not-so-distant future.

Inflation Is Improving, but Not Quite There Yet

Inflation has been coming down, which is good news. Normally, that would create pressure for the Fed to cut rates. But they’re taking a cautious approach. They want to make sure prices stay stable before making any big moves especially since the impact of recent tariff policies hasn’t fully shown up in consumer data yet.

Trade Policy and Uncertainty Are Holding Things Back

New tariffs are causing a lot of economic noise.

Businesses are adapting, and while we haven’t seen significant price increases yet, economists believe they’re coming. The Fed is keeping a close eye on this and doesn’t want to act too quickly.

A New Fed Chair May Be on the Horizon

Fed Chair Jerome Powell’s term ends in 2026, but there’s speculation that the President may nominate his successor sooner. That could create a shift in tone and influence markets well ahead of time especially if the next Chair favors rate cuts.

What It All Means for Buyers, Sellers & Homeowners

Right now, the market is in a bit of a holding pattern. Mortgage rates are still historically favorable, but they’re not dropping as quickly as some hoped.

Housing inventory is tight, and buyers are trying to time the market.

Here’s the takeaway: waiting for a perfect moment might not be necessary. As economic uncertainty settles and key variables like inflation and leadership become clearer, we expect more confidence in the market and more movement.

If you’re thinking about making a move or just have questions about how this impacts you, we’re here to help. Whether it’s running numbers, looking at refi options, or figuring out the best path forward, we’re always just a message away.

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