Fed Holds Rates Steady Amid Economic Concerns
The Federal Reserve has announced that it will keep interest rates unchanged, maintaining its benchmark rate at 4.25% to 4.5%. This decision continues a pause that began earlier in the year as the central bank watches for signs of how the economy will respond to recent challenges — including rising inflation and uncertain global trade conditions.
What Is Stagflation and Why Does It Matter?
One of the biggest concerns right now is something economists call stagflation — a combination of high inflation and rising unemployment. Typically, these two don’t happen at the same time. Inflation usually comes when the economy is booming, and unemployment rises during a slowdown. But when both occur together, it can make things more difficult — not just for policymakers, but for everyday Americans trying to buy or sell a home.
Fed Chair Jerome Powell noted that while the labor market (jobs) is still relatively strong, the economy is facing uncertainty. Much of this is tied to the effects of ongoing trade policies and tariffs, which are increasing costs for goods — including materials used in homebuilding — and creating unpredictability in both the housing and stock markets.
What Does This Mean for the Real Estate Market?
At County Properties, we understand how big-picture economic decisions affect your real estate goals. Here’s how the Fed’s rate pause and broader economic conditions might impact you:
For Buyers:
- Mortgage Rates May Stay High for a While
Although the Fed didn’t raise rates, mortgage lenders tend to keep rates elevated during uncertain times. This means monthly payments for new loans may remain higher than what we saw in previous years. - More Room to Negotiate
With fewer buyers in the market due to affordability issues, sellers may be more willing to accept lower offers or offer closing cost assistance. - Inflation Still Affects Your Budget
Higher prices for goods and services can stretch budgets, so it’s important to get pre-approved and understand your financial limits.
For Sellers:
- Pricing Strategically is Key
With more cautious buyers, homes priced appropriately are more likely to sell. Overpricing can lead to longer days on the market. - Equity Can Work in Your Favor
Many long-term homeowners, especially baby boomers, have strong equity positions. This can make it easier to downsize, relocate, or invest in a second property. - Market Timing Matters
The Fed’s future decisions will depend on how the economy performs in the months ahead. Acting now may be better than waiting for more volatility later.
Our Take at County Properties
While we can’t control interest rates or global trade decisions, we can help you navigate the current market with confidence. Whether you’re planning to buy your first home, sell your current one, or make a strategic move, County Properties offers the experience and guidance you need to succeed — even in uncertain times.
Let us help you plan your next move with clarity and confidence.