Title: Fed Cuts Interest Rates – What This Means for Orange County Real Estate

The Federal Reserve has officially lowered its benchmark interest rate by 25 basis points, bringing it to a range of 4.0%–4.25%. This is the first rate cut since December 2024 and comes in response to a softening labor market and ongoing political pressure, even as inflation remains above the Fed’s 2% target.

📉 Mortgage Rates Already Reacting

Mortgage rates often move ahead of the Fed’s actions, and we’re already seeing results. The average 30-year fixed rate recently dropped to about 6.35%, one of the lowest points in nearly a year. Adjustable-rate mortgages (ARMs) are also becoming more popular as buyers look for lower initial payments.

🏡 What It Means for Buyers

Lower borrowing costs improve affordability, giving buyers more purchasing power. This could open the door for many who have been waiting on the sidelines. Acting sooner may allow buyers to take advantage of today’s lower rates before increased demand drives competition back up.

💰 What It Means for Sellers

Sellers stand to benefit as buyer demand rises. Homes priced right and well-prepared for the market are likely to see more showings and stronger offers. With mortgage rates trending lower, now could be an excellent time to list before the market heats up again.

🌟 Orange County Outlook

In Orange County, where inventory has been rising, this shift could accelerate activity on both sides of the market. Buyers have more choices, and sellers may need to focus on pricing and presentation to stand out. But overall, the Fed’s move could bring welcome energy to the fall market.

📲 Thinking about making a move? Let’s discuss how today’s rate cut impacts your goals in the Orange County real estate market.

I'm here for your questions, never hesitate to call, text or email!

Patti Gregory, Realtor 

714.398.1998

pattigregoryrealestate@gmail.com