Learn the factors driving volatility in the housing market and how a professional agent can guide you in making informed decisions.

If you're considering making a move or investment in real estate, you've likely noticed something: the housing market feels a bit unpredictable right now. From home prices to mortgage rates, we're seeing more volatility than usual, and it's important to understand why.

What’s Driving Today’s Market Volatility?

Factors like economic data, unemployment levels, Federal Reserve decisions, and even presidential elections are creating uncertainty, which in turn leads to market volatility. This volatility is reflected, for example, in the fluctuations of mortgage rates. New economic reports and geopolitical events can cause sudden shifts in rates, even though experts predict a long-term decrease.

As Greg McBride, CFA, Chief Financial Analyst at Bankrate, explains: "After steadily declining throughout the summer months, I expect more ups and downs to mortgage rates... Job market data will be closely watched as well as any clues from the Fed about the extent of upcoming interest rate cuts."

This projection of a long-term decrease in mortgage rates won’t follow a straight line, as Hannah Jones, Senior Economic Research Analyst at Realtor.com, states: "Rates have shown considerable volatility lately, and may continue to do so... Overall, we still expect a downward long-term mortgage rate trend."

The Importance of Partnering with a Professional

While the road ahead may have some bumps, you don’t have to navigate it alone. A great real estate agent will keep you updated on the latest market trends, guide you through any shifts, and help you make smart decisions based on your goals. To explore properties for sale or properties for rent in the current market, an agent is essential.

For example, as mortgage rates fluctuate, your agent and trusted lender will explain how these changes impact what you can realistically plan for in your monthly payment. This will allow you to see how even a small change in rates can affect your budget without losing sight of the big picture.

Since conditions can vary greatly from one neighborhood to another, your agent will also help you understand your specific market, whether it's navigating competition with other buyers, understanding the number of homes available, or staying updated on local home prices. Their insights and expertise will help you adapt to any market movement.

Bottom Line

The housing market may be experiencing some shifts, but don’t let that stop you from making your move. With the support of an experienced real estate agent and a trusted lender, you’ll be ready to navigate the changes and make the most of the opportunities that arise. For more information on maximizing your decisions in the market, check out our guide to the Down Payment Assistance Program in Florida or reach out for professional guidance.