Will DC housing prices rise if/when Fed cuts rates in September?

[Anonymous]

*are trying

[Anonymous]

Anonymous wrote:Don't wait until the FED drops rates. I would buy knowing you can. Prices are forecasted to go up this year and next year.

Says who, you? An agent most likely.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Don't wait until the FED drops rates. I would buy knowing you can. Prices are forecasted to go up this year and next year.

Says who, you? An agent most likely.

All the experts are saying this.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Don't wait until the FED drops rates. I would buy knowing you can. Prices are forecasted to go up this year and next year.

Says who, you? An agent most likely.

All the experts are saying this.

Experts? Oh the economist right.

[Anonymous]

PP worried about Trump crashing the local market... Biden dropping out probably does change the risk calculus here.

[Anonymous]

The Dems have already raised 27MM in the first 5 hours after the Biden-Kamala announcement. A Harris presidency will he very good for interest rates, inflation, and the stock market, which abides well for housing.

[Anonymous]

The Dems have already raised 27MM in the first 5 hours after the Biden-Kamala announcement. A Harris presidency will be very good for interest rates, inflation, and the stock market, which bodes well for housing.

[Anonymous]

Anonymous wrote:The Dems have already raised 27MM in the first 5 hours after the Biden-Kamala announcement. A Harris presidency will be very good for interest rates, inflation, and the stock market, which bodes well for housing.

But to reiterate, this thread is about DC housing prices, not national ones. Focus on what a Harris administration would mean for the local market given our unique place... I think it will make prices skyrocket. Trump will crater local prices for previously discussed reasons.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The Dems have already raised 27MM in the first 5 hours after the Biden-Kamala announcement. A Harris presidency will be very good for interest rates, inflation, and the stock market, which bodes well for housing.

But to reiterate, this thread is about DC housing prices, not national ones. Focus on what a Harris administration would mean for the local market given our unique place... I think it will make prices skyrocket. Trump will crater local prices for previously discussed reasons.

+1
I agree! A Harris presidency will have a very positive effect on housing prices. So you should buy now, if you can, if you're thinking of moving in the next year.

[Anonymous]

Numerous houses went under contract after the news that the fed will probably cut rates in September. Folks trying to buy before the inevitable price increases.

[Anonymous]

I can imagine what can be (affordable housing), unburdened by what has been (high rates, high prices)

[Anonymous]

You probably shouldn't wait to buy since interest rates will most likely be dropping.

[Anonymous]

Yes. Housing prices will go up when rates are cut. This has been historically true.

[Anonymous]

Anonymous wrote:Yes. Housing prices will go up when rates are cut. This has been historically true.

Source? It's likely true that prices go up when mortgages rates decrease (more purchasing power for buyers). But it's a big leap from fed interest rate cuts (of short term rates) to lower mortgage rates. "Historically", the yield curve typically slopes upwards (long-term rates are higher than short term rates). So if the short-term rate is cut by the fed 3-4 times, to 4.25%, "historically" longer term rates (the 10 year) would be marginally higher. The 10 year is currently at 4.25%. What is your argument for how short-term rate cuts lead to lower long term rates? If you don't have one, then don't argue that mortgage rates, which are keyed off of the 10 year, are going down.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yes. Housing prices will go up when rates are cut. This has been historically true.

Source? It's likely true that prices go up when mortgages rates decrease (more purchasing power for buyers). But it's a big leap from fed interest rate cuts (of short term rates) to lower mortgage rates. "Historically", the yield curve typically slopes upwards (long-term rates are higher than short term rates). So if the short-term rate is cut by the fed 3-4 times, to 4.25%, "historically" longer term rates (the 10 year) would be marginally higher. The 10 year is currently at 4.25%. What is your argument for how short-term rate cuts lead to lower long term rates? If you don't have one, then don't argue that mortgage rates, which are keyed off of the 10 year, are going down.

There are reasons to believe that Fed rate cuts could still lead to higher home prices. While it's true that mortgage rates are more closely tied to long-term yields like the 10-year Treasury, Fed rate cuts can indirectly influence these longer-term rates through market expectations and economic conditions. Lower rates typically boost economic activity and inflation expectations. This can affect the entire yield curve, potentially bringing down longer-term rates as well. Even if mortgage rates don't decrease significantly, the overall lower interest rate environment can stimulate demand in the housing market by improving consumer confidence and increasing investment in real estate as an alternative to lower-yielding assets. Coupled with potentially easier access to credit, this could put upward pressure on home prices even if mortgage rates don't fall dramatically.