September Update: Interest Rate Cut: What It Means for Fresno Homebuyers

The long-awaited Interest rate cut: With inflation starting to slow, the Federal Reserve cut interest rates by a half-point.

• Mortgage rates had already been trending down in anticipation of the decision. 

• 30-year mortgages are now close to 6%, down from 7% earlier this year—saving hundreds of dollars on the average monthly payment. 

• What’s ahead: Some experts are warning that mortgage rates may not go down much further since the cut is already priced into the market, but the state of the economy will ultimately determine rates.  

 
Impact on Fresno’s housing market: Prices are up slightly, and the number of homes sold is rising compared to one year ago—a good sign that more buyers are coming into the market as payments become more affordable. 

• However, prices are not rising rapidly yet, which could happen as buyers waiting on the sidelines realize rates have come down. 

• A lot will depend on whether potential sellers feel more comfortable about purchasing their next home and putting their current home up for sale.

• The number of homes for sale has increased about 40% since last year, showing more homeowners are willing to sell. 

 
Some good news: Lower mortgage rates are making a house payment more comparable with renting—a welcome change from when mortgages were 7%.

Market Update 

Fresno County’s median home price increased to $434,000—up about 4% from last month and 2% year-over-year. Home sales are up more than 5% compared to a year ago, showing sales are starting to rebound.