Fed decision reaction: What’s next for the mortgage market?

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“Clients aren’t necessarily calling about the Fed decision,” Lessard said. “What we’re seeing is a growing number of buyers reaching out to prepare for homeownership. Many are getting preapproved, reviewing their financing options, and putting themselves in a position to act when the right home becomes available.

“Rather than trying to time the market perfectly, they’re focusing on being ready when the opportunity presents itself. I think there’s a growing realization that if mortgage rates improve, competition for homes is likely to increase. Buyers who prepare now will be in a much stronger position than those who wait until rates have already fallen.”

The outbreak of the Iran war in February threw a new curveball into the US housing market outlook, and for many observers a definitive end to that conflict could mark a turning point for a market that’s still struggling to get off the ground this year.

A cautiously optimistic outlook

Lessard said he remains optimistic about the path ahead for the next 12 months, partly because a cooler market is giving buyers a wider range of options and in some cases better purchasing power even despite rate fluctuations.

“While affordability continues to be a challenge for many buyers, we’re starting to see more inventory come to market in many areas, giving buyers more choice and reducing some of the intense competition we’ve experienced in past years,” he said.

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