The Federal Reserve is expected to keep interest rates steady at its upcoming March 2025 meeting. Here’s what real estate investors and homebuyers should know:

  • Steady rates (most likely): Mortgage rates remain around mid-6%, keeping the housing market stable but cautious. Investors and buyers face no immediate changes.

  • If rates rise (less likely): Mortgage costs increase, cooling housing demand further, potentially lowering home prices or slowing growth.

  • If rates drop later in 2025: Mortgage rates fall toward low-6% or even high-5%, boosting buyer affordability, housing sales, and potentially home prices.

Impact on Northwest Arkansas:

  • The region remains resilient due to strong job growth, but lower rates would significantly boost buyer activity and listings.

Investor tip: Keep an eye on Fed commentary, not just the rate decision. Signals about future rate cuts or hikes can significantly impact mortgage rates, home affordability, and property values.

Watch closely, stay flexible, and be ready to act.

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