Expect the Unexpected: Anticipating Volatility in Today’s Housing Market

Expect the Unexpected: Anticipating Volatility in Today’s Housing Market

If you’re considering a move, you’ve likely noticed that the housing market feels a bit uncertain. Home prices and mortgage rates are more volatile than usual, and understanding why is key.

Here’s a high-level look at what’s driving these changes and how to navigate them effectively.

What’s Driving Today’s Market Volatility?

Economic data, unemployment rates, Federal Reserve policies, and the upcoming presidential election are all contributing to today’s uncertainty—and this often leads to market fluctuations.

Mortgage rates are a prime example. Economic reports, geopolitical events, and other key updates can cause quick rate changes, even though the general forecast suggests a gradual decrease. This is especially evident with monthly releases of employment and inflation data, which can trigger immediate reactions in the market.

As Greg McBride, CFA, Chief Financial Analyst at Bankrate, explains, these types of updates will likely keep influencing mortgage rates as the markets respond to new information:

“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 explains why we can’t expect mortgage rates to steadily decline in a straight line over the coming year. As Hannah Jones, Senior Economic Research Analyst at Realtor.com, points out, various economic factors will continue to create fluctuations along the way:

“Rates have shown considerable volatility lately, and may continue to do so . . . Overall, we still expect a downward long-term mortgage rate trend.”

Working with a professional who understands the market dynamics in your area is the best way to navigate today’s housing conditions. They’ll provide insights into local trends, such as price movements and inventory levels, which can vary significantly from one region to another. With expert guidance, you’ll be able to make informed decisions and stay on top of any market shifts that could impact your buying or selling goals.

The Importance of Partnering with a Pro

With an experienced agent by your side, you’ll have a guide through every step of the process, from understanding how mortgage rate changes affect your budget to navigating competitive or fluctuating local markets. They’ll not only provide clarity around each shift but also help you stay focused on the bigger picture—whether that’s finding the right home within your budget or timing your sale for maximum value. This way, no matter what’s happening in the market, you’re well-prepared and equipped to make informed, confident decisions tailored to your unique needs and goals.

Bottom Line

While the housing market is indeed evolving, there's no need to let that hold you back. With guidance from a knowledgeable real estate agent and insights from a trusted lender, you’ll be equipped to handle any shifts and leverage the opportunities they bring.

Let's turn today’s uncertainties into your advantage, so you can move forward confidently toward your homeownership goals.