Hi everyone!

I hope you’re having a great week! As we settle into 2025, there’s a lot happening in the real estate world. Interest rates are holding steady, inflation is cooling, and many buyers and real estate agents are wondering what’s next. Whether you’re thinking about buying, selling, or helping clients navigate this market, I’ve got the latest insights for you. Let’s jump in!

Interest Rates Holding Steady

Good news for homebuyers and agents: Interest rates have remained steady, with the 30-year fixed mortgage rate averaging 6.96% as of January 23, 2025. This is slightly down from last week’s 7.04% and signals potential improvement in affordability.

The 10-year Treasury yield, which often influences mortgage rates, has also declined from the 2024 highs above 4.80% to around 4.50%. Historically, when rates have hit these levels, we’ve seen mortgage rates drop further—something to keep an eye on!

Inflation Trends & Fiscal Policy

Inflation has been trending down from its 2022 peak of nearly 9% to just over 3%. If inflation continues to cool, we could see mortgage rates decrease even more. However, fiscal policy changes in the coming months will play a key role in whether inflation stays on this path or rebounds.

Government spending and tax policies impact the broader economy, which in turn influences interest rates. The Federal Reserve’s upcoming meeting will be an important moment to watch, as it could give us a clearer picture of what’s ahead.

What This Means for Homebuyers & Real Estate Agents

For homebuyers, this is a window of opportunity to secure a better rate before any potential changes in fiscal policy or economic shifts. If you’ve been waiting for the right moment, now is a great time to prepare, especially as seasonal shifts may bring more inventory and room for negotiation.

For real estate agents, understanding these market trends is crucial in advising clients effectively. With stable rates and improving affordability, now is the time to encourage hesitant buyers to explore their options. Additionally, sellers can benefit by pricing strategically, knowing that buyers may soon become more active in the market.

My Take: Why This Matters Now

As someone deeply involved in real estate and investment properties, I see this as a key moment for both buyers and agents to act strategically. We’ve seen how quickly conditions can change, and while rates are steady now, shifts in fiscal policy could impact affordability in the near future. My advice? Buyers should get pre-approved and start exploring homes now. Agents should educate their clients on how stable rates and lower inflation create a better environment for transactions.

Let’s Connect

I’m here to help you navigate these opportunities. Whether you’re looking for your first home, an investment property, or preparing to sell, let’s discuss your goals and create a strategy to make the most of the current market conditions.

Warmly,

AJ Chamberlin
📞 +1 (303) 588-8999
📧 aj@attitude.com
🌐 www.attitudehomes.com

Credits:
Mark Soot
Mortgage Loan Officer
NMLS #403853
📞 (303) 817-0089
📧 Mark@elevationscu.com
🌐 Visit Mark’s Website Elevations Credit Union
1301 Walnut Street, Boulder, CO 80302