Ryan Haley is back with the real estate market report for September 19th, 2024.

We have some historic news that indirectly affects the real estate market and also impacts the overall economy, people's savings, affordability, and inflation. Where we are at is a historic moment—yesterday was the first time in four years that the Fed decided to reduce the federal funds interest rate. They reduced the rate by half a percent, which, in my opinion, was a little more than I expected. I know many economists were anticipating that we might see a half-point reduction, but more were leaning toward a quarter-point decrease. So, we went with a half-point reduction.

Mortgage Interest Rates 

What does that mean for mortgage rates? You have to keep in mind that mortgage rates are not directly tied to the Fed; they are indirectly tied. It certainly helps on the mortgage rate side, but a lot of the anticipation leading up to the Fed's decision was already in place. You'll often hear the term that mortgage rates and their reduction were "baked in" with the expectation that the Fed would make this move. They were already planning for it.

As of today, our interest rates are sitting at 6.15%. That is the average 30-year fixed rate for a conventional loan across the United States. Interestingly, 6.15% is up a little bit today compared to yesterday. This aligns with the anticipation that, regardless of what the Fed did, mortgage rates had already accounted for this decision. Rates are up slightly today, but I want to point out that mortgage rates have been steadily falling over the past 13 weeks. If you recall, last year around this time, rates were almost at 8%. Today, we are in the low sixes. For a $400,000 mortgage, that’s a savings of roughly $375 a month compared to last year. That’s a significant savings.

Most economists predict that we will see gradual reductions in mortgage interest rates, and the Fed will likely continue to lower rates. However, we are not going to see 2%, 3%, or even 4% mortgage rates anytime soon. So, if you're a buyer, I would recommend taking advantage of the current decrease in rates. If you see inventory that looks good, go ahead and jump on it.

I know I usually end with the mortgage piece, but I wanted to start with it this time because it's such a historic moment—the first time in four years that we've seen the Fed change policy and begin reducing interest rates.

Now, what's going on in the real estate market? Well, you've heard us talk about mortgage rates and inventory. Inventory is up nationwide by about 30%, and we continue to see that trend this fall, which is great news for buyers.

Worcester County Real Estate Market Report

In the last 7 days here in Worcester County, we had 73 new properties come on the market, while 51 went under contract. Currently, Worcester County has 619 active listings, and we are selling at a pace of 186 properties per month. This gives us a 3.3-month supply in Worcester County.

Wicomico County Real Estate Market Report

In Wicomico County, we had 37 new listings hit the market this past week, while 29 went under contract. The county currently has 220 active listings, and we are selling 97 properties per month, giving us a 2.26-month supply—up just slightly from previous weeks.

Sussex County Real Estate Market Report

Finally, in Sussex County, there were 204 new listings this past week, while 164 went under contract. The county currently has 1,860 active listings, and we are selling at a pace of 594 properties per month, which gives us a 3.1-month supply.

For all three counties, we've added inventory over the last week, which is good news as it helps balance out the overall market. If you have any questions about buying opportunities this fall or if you're a seller looking to take advantage of the increased buyer activity due to lower rates, let's have a conversation. It would be my pleasure to assist in any way I can.

Thank you again for tuning in. Please like and share this with your friends, and we'll see you next week with another edition of the real estate market report.