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What To Look For From This Week’s Fed Meeting

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You may be hearing a lot of talk about the Federal Reserve (the Fed) and how their actions will impact the housing market right now. Here’s why.

The Fed meets again this week to decide the next step with the Federal Funds Rate. That’s how much it costs banks to borrow from each other. Now, that’s not the same thing as setting mortgage rates, but mortgage rates can be influenced through this process. And if you’re thinking about buying or selling a home, you may be wondering about the downstream impact and when mortgage rates will come down.

Here’s a quick rundown of what you need to know to help you anticipate what’ll happen next. The Fed’s decisions are guided by these three key economic indicators:

  1. The Direction of Inflation

  2. How Many Jobs the Economy Is Adding

  3. The Unemployment Rate

Let’s take a look at each one.

1. The Direction of Inflation

You’ve likely noticed prices for everyday goods and services seem to be higher each time you make a purchase at the store. That’s because of inflation – and the Fed wants to see that number come back down so it’s closer to their 2% target.

Right now, it’s still higher than that. But despite a little volatility, inflation has generally been moving in the right direction. It gradually came down over the past two years, and is holding fairly steady right now (see graph below):

 
 

The path of inflation – though still not at their target rate – is a big part of the reason why the Fed will likely lower the Fed Funds Rate again this week to make borrowing less expensive, while still ensuring the economy continues to grow.

2. How Many Jobs the Economy Is Adding

The Fed is also keeping an eye on how many new jobs are added to the economy each month. They want job growth to slow down a bit before they cut the Federal Funds Rate further. When fewer jobs are created, it shows the economy is still doing well, but gradually cooling off—exactly what they’re aiming for. And that’s what’s happening right now. Reuters says:

“Any doubts the Federal Reserve will go ahead with an interest-rate cut . . . fell away on Friday after a government report showed U.S. employers added fewer workers in October than in any month since December 2020.”

Employers are still hiring, but just not as many positions right now. This shows the job market is starting to slow down after running hot for a while, which is what the Fed wants to see.

3. The Unemployment Rate

The unemployment rate shows the percentage of people who want jobs but can’t find them. A low unemployment rate means most people are working, which is great. However, it can push inflation higher because more people working means more spending—and that makes prices go up.

Many economists consider any unemployment rate below 5% to be as close to full employment as is realistically possible. In the most recent report, unemployment is sitting at 4.1% (see graph below):

 
 

Unemployment this low shows the labor market is still strong even as fewer jobs were added to the economy. That’s the balance the Fed is looking for.

What Does This Mean Going Forward?

Overall, the economy is headed in the direction the Fed wants to see – and that’s why experts say they will likely cut the Federal Funds Rate by a quarter of a percentage point this week, according to the CME FedWatch Tool.

If that expectation ends up being correct, that could pave the way for mortgage rates to come down too. But that doesn’t mean they’ll fall immediately. It will take some time. Remember, the Fed doesn’t determine mortgage rates. Forecasts show mortgage rates will ease more gradually over the course of the next year as long as these economic indicators continue to move in the right direction and the Fed can continue their Federal Funds rate cuts through 2025.

But a change in any one of the factors mentioned here could cause a shift in the market and in the Fed’s actions in the days and months ahead. So, brace for some volatility, and for mortgage rates to respond along the way. As Ralph McLaughlin, Senior Economist at Realtor.com, notes:

“The trajectory of rates over the coming months will be largely dependent on three key factors: (1) the performance of the labor market, (2) the outcome of the presidential election, and (3) any possible reemergence of inflationary pressure. While volatility has been the theme of mortgage rates over the past several months, we expect stability to reemerge towards the end of November and into early December.”

Bottom Line

While the Fed’s actions play a part, economic data and market conditions are what really drive mortgage rates. As we move through the rest of 2024 and 2025, expect rates to stabilize or decline gradually, offering more certainty in what has been a volatile market. 

Read more at KeepingCurrentMatters.com

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10 ways to look after your mental health in autumn and winter

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As the days get shorter and the temperature drops, we explore some simple ways to take care of yourself this winter

For some, a change in season can bring about a certain energy. It may be excitement as we watch nature shift outside our window, or perhaps joy about what’s to come this season. For others, however, a change in season can invite a particular sense of dread.

Autumn and winter specifically can spark a low mood, as the bright light and warmth of summer drains away. In some cases, this switch can be severe, leading to Seasonal Affective Disorder (SAD). If you can relate to a struggle in colder months, we’ve got 10 ideas to help you support your mental health.

1. Light up your life

Daylight can have a big impact on our mood and our circadian rhythms (affecting how we sleep). So, to give your mood a helping hand, try to ensure you expose yourself to daylight daily. Ideally, this would look like getting outside in the middle of the day, even if it’s just to stand for a few minutes looking up at the sky.

If this isn’t possible, head to a window or consider investing in a SAD lamp. You might also find it helpful to get some cosy low-lighting going in the evenings, to help you feel settled and safe in your environment.

2. Stay active

While it’s incredibly tempting to hibernate over winter and spend the majority of your time under a blanket (ideally with snacks), this likely isn’t going to help your mood. Staying active can encourage those wonderful feel-good hormones, endorphins, which boost your mood and can even ease pain.

The trick is to find something you enjoy and something that is accessible to you. This may mean heading out for a walk, doing some gentle stretches in front of the fire or hitting the gym. We’re all different, so find what works for you and what makes you smile.

3. Connect with nature

It’s been well-documented that nature has a positive effect on our mental health, and winter can provide a wonderful opportunity to reconnect. As the seasons change, so does the outside world, so why not head out with a notebook to do some nature journaling? Write about what you see, draw some sketches, and ask yourself what emotions it sparks.

If being outside a lot isn’t accessible to you, try to bring nature in. Look into indoor plants, enjoy some bird watching from your window, and pop on some David Attenborough.

4. Keep cosy and warm

This winter more than others may feel especially difficult, with some of us avoiding putting the heating on to avoid skyrocketing bills. Whether this is you, or you simply struggle in colder weather, it can have a real impact on your mood.

Staying as warm as possible can help. Simple steps like wearing thicker jumpers and socks can make a difference. Hot water bottles, electric blankets and plenty of hot drinks can also help.

5. Embrace hygge

The Danish concept of hygge (pronounced “hoo-gah”) is something more and more of us are trying to adopt. Referring to moments that are ‘cosy, charming or special’, hygge can cover a range of things. From lighting a special candle in the evening to enjoying dinner with friends, embracing the idea of hygge can make winter oh so appealing.

Learn more about finding hygge in your home.

6. Eat nutritious and warming meals

Our eating habits often change with the seasons, and in winter we tend to crave more sumptuous, hearty meals. Ensuring we continue to eat a balanced diet over winter can support our mood as well as our immune system.

Get inspired at Nutritionist Resource’s recipe section.

7. Stay connected

When it’s cold and dark out, it can be easy to opt for staying in instead of going out. While this can be incredibly lovely sometimes, be mindful not to isolate yourself. Staying connected with friends, family and loved ones is imperative to our mental wellbeing.

Try meeting up for a cuppa, having a regular video call or even start your own supper club. If you mostly work from home, see if you can get together with your colleagues. This may mean heading into an office if your company still has one, or even arranging a co-working day at a local cafe with friends.

8. Plan ahead for busy times

As we get closer to Christmas, our calendars can fill up with social events. While this can certainly help with the point above, sometimes it can feel overwhelming. Try to plan ahead where you can, perhaps batch-cooking some meals to help save time, for example.

You may also want to plan some recuperation days, ensuring you’re taking time for self-care when things get busy. And if you need to, don’t hesitate to say no to social invites that feel a stretch too far.

9. Start a winter-friendly hobby

As the days get shorter, it can be helpful to keep the mind busy with a hobby. Think about some winter-friendly activities like knitting, reading or even completing a puzzle. Or, on the other end of the spectrum, lean into the chill and try cold-water swimming.

10. Seek extra support if you need to

Mental health isn’t linear and it can dip at any time. If you’re experiencing a dip and you’re struggling to cope, it may be worth seeking some professional support. This may mean visiting your GP, looking up a local support group, talking to a charity helpline, or finding a therapist.

Know that there are options and you are not alone in this.

Read more at Happiful.com

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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

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How to Pick a Color Scheme

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You just rented or purchased your first home and are ready to move, but where to start with furnishings, decor, lighting, artwork, and most importantly, wall colors?

Furnishing a first home can be overwhelming and expensive, but of all the elements that comprise your new home, color is the least expensive and provides the greatest impact.

As I discussed in a previous article, upon purchase, the wall color is most likely some shade of off-white, and the floor a neutral shade of tan or brown. Alternatively, if you are moving into a fixer-upper or an older home, you may be inheriting someone else's color and design choices. In either case, before proceeding, it’s always a good idea to go on Pinterest or TikTok for inspiration.

When moving into your first home, friends or family members may want to gift you new or used furniture that may not be your ideal aesthetic. This presents a moment of truth: Would you rather sit on the floor or would you rather lounge on a bright floral couch that might not be your taste? These decisions likely occur prior to establishing a color scheme. Just remember that upholstered furniture can be slip-covered or reupholstered and wood furniture can be painted.

A word of caution, however, no matter how luxurious or immediately available a piece of furniture may be, if you are not sure about the color or tone, do not build your color scheme around it, for you will always be unhappy. A good way to experiment with color schemes is to accept gifted or even found furniture to see how it feels.

Monochromatic Schemes 

The simplest and perhaps most foolproof color scheme is monochromatic, utilizing variations of a single color. While this approach may sound simple, it can prove challenging to work with just one color, no matter how many different shades are available. Monochromatic schemes do not have to be monotonous or boring! Remember, even the White House features three monochromatic rooms: the Red Room, the Blue Room, and the Green Room, which are far from simple or stale.

The 60-30-10 Rule 

One popular approach for determining your color scheme is the 60-30-10 rule. It may be hard to believe, but decorating and math are compatible! This equation establishes a major color as dominant, or 60 percent of a space, whether a room or an entire house. Going all in with a bold color as your 60 percent takes courage, but if orange or turquoise makes you happy, why not paint the walls and ceiling in this color? Live with your decision for a few days; it can always be repainted.

The next color, or the 30 percent in this scheme, is the secondary color or texture. If the dominant color is very bright, the secondary color may be more subdued. Remember, the secondary color will support the main color, bringing some contrast into your scheme.

Finally, the 10 percent color is the accent color, which gives the space some pizzazz or character. Here is where you should be really fearless, as only a small portion of this color will be used.

Picking Colors Based On Your Closet 

Still not sure where to begin selecting colors for your home? Why not start with your closet? The colors that you gravitate toward in apparel, the shades that people compliment when you wear them, are very possibly good colors with which to surround yourself. One's skin tone, hair and eye color will designate whether you are labeled winter, spring, summer or autumn.

Winter looks best in bold cool colors with blue or pink undertones, while spring shines in bright clear colors like peach, turquoise and bright coral. Soft, muted colors like lavender, powder blue, or dusty rose are ideal for summer. And autumn, no surprise, is at its best in deep reds, golden yellows and earthy browns. If you feel at your best wearing certain colors, why not decide to live with the same colors in your home?

Room Exposure 

The exposure of each room, whether north, south, east or west, can also provide inspiration and guidance for a color scheme. All color is light, and as light changes throughout the day, so does color. Overriding hourly or seasonal lighting changes is the exposure or multiple exposures of a room.

Light in north-facing rooms is typically consistent, but can be muted and cool. There are two options for north-facing rooms: cool light is ideal for darker colors or utilize lighter colors with warm undertones, such as those with a yellow cast or peachy pinks.

South-facing rooms are brilliantly lit, ideal for blues, greens and violets that will cool off the color temperature. More intense, deep colors also shine and will not look washed out in a south-facing room.

The sun rises in the east, so a warmer, brighter light color works best. Starting the day in a room with eastern exposure and a pastel or soft color can be inspiring.

Rooms with western exposure, where the sun sets, are perfect for darker, cooler colors. A neutral shade with cool or warm undertones will also work well.

The Properties of Color 

Once you have settled on your color scheme, it is crucial that you pay attention to a few properties of color, such as the intensity or hue of the color you are using and the lightness or tint of a color you have selected. A shade of a color is a color that is darker than its original hue, as a result of adding black to it. Adding white to a color increases its lightness, making it a tint.

By experimenting with paint, starting with the three primary colors red, blue and yellow, you can refine the colors you work with by adding black or white. Depending on your skill set and willingness to experiment, a minimal investment of five tubes of acrylic paint can be both illuminating and entertaining.

By mixing the paints, adding white and black, it is possible to comprise your color scheme on paper, which can be helpful when shopping for furnishings and fabric. Color saturation refers to the intensity or vibrancy of a color. If all the colors you use are highly saturated, the result will be an active, emotionally uplifting room, such as a space used for entertaining.

Make Your Home Yours 

There are no good or bad colors, so experiment with a carefree attitude and see what you discover. Color, like room temperature or sense of smell and taste, is extremely personal. If you love a color, go ahead and use it, without seeking the approval of others.

Color is the fastest way to put your personal signature on a space. Maybe even stroll through a museum, observe art that speaks to you, and then visit the museum gift shop for copies of your favorite art pieces. The composition and color placement in the artwork can be a point of departure from your color scheme. Most importantly, believe in your color choices, for they will make your home yours and yours alone.

Read more at USnews.com

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Why Home Sales Bounce Back After Presidential Elections

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With the 2024 Presidential election fast approaching, you might be wondering what impact, if any, it’s having on the housing market. Let’s break it down.

Election Years Bring a Temporary Slowdown

In any given year, home sales slow down slightly in the fall. It’s a typical, seasonal trend. However, according to data from BTIG, in election years there’s usually a slightly larger dip in home sales in the month leading up to Election Day (see graph below):

 
 

Why? Uncertainty. Many consumers hold off on making major decisions or purchases while they wait to see how the election will play out. It’s a pattern that’s shown up time and time again, and it’s particularly apparent for buyers and sellers in the housing market.

This year is no different. A recent survey from Redfin found that 23% of potential first-time homebuyers said they’re waiting until after the election to buy. That’s nearly a quarter of first-time buyers hitting the pause button, likely due to the same feelings of uncertainty.

Home Sales Bounce Back After the Election

The good news is these delayed sales aren’t lost forever—they’re just postponed. History shows sales tend to rebound after the election is over. In fact, home sales have actually increased 82% of the time in the year after the election (see chart below):

 
 

That’s because once the election dust settles, buyers and sellers have a sense of what’s ahead and generally feel more confident moving forward with their decisions. And that leads to a boost in home sales.

What To Expect in 2025

If history is any indicator, that means more homes will sell next year. And based on the latest forecasts, that’s exactly what you should expect. As the graph below shows, the housing market is on pace to sell a total of 4.6 million homes this year, and projections are for 5.2 million total sales next year (see graph below):

 
 

And that aligns with the typical pattern of post-election rebounds.

So, while it might feel like the market is slowing down right now, it’s more of a temporary dip rather than a long-term trend. As has been the case before, once the election uncertainty passes, buyers and sellers will return to the market.

Bottom Line

It's important to remember that while election years often bring a short-term slowdown in the housing market, the pause is usually temporary. Those sales are not lost. Data shows home sales typically increase the year after a Presidential election, and current forecasts indicate 2025 will be no different. If you’re waiting for a clearer picture before making a move, just know that the market is expected to pick up speed in the months ahead.

Read more at KeepingCurrentMatters.com

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Avoid These Top Homebuyer Mistakes in Today’s Market

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No one likes making mistakes, especially when they happen in what’s likely the biggest transaction of your life – buying a home.

That’s why partnering with a trusted agent is so important. Here’s a sneak peek at the most common missteps buyers are making in today’s market and how a great agent will help you steer clear of each one.

Trying To Time the Market

Many buyers are trying to time the market by waiting for home prices or mortgage rates to drop. This can be a really risky strategy because there’s so much at play that can have an impact on those things. As Elijah de la Campa, Senior Economist at Redfin, says:

“My advice for buyers is don’t try to time the market. There are ​a lot of swing factors, like the upcoming jobs report and the presidential election, that could cause the housing market to take unexpected twists and turns. If you find a house you love and can afford to buy it, now’s not a bad time.”

Buying More House Than You Can Afford

If you’re tempted to stretch your budget a bit further than you should, you’re not alone. A number of buyers are making this mistake right now.

But the truth is, it’s actually really important to avoid overextending your budget, especially when other housing expenses like home insurance and taxes are on the rise. You want to talk to the pros to make sure you understand what’ll really work for you. Bankrate offers this advice:

“Focus on what monthly payment you can afford rather than fixating on the maximum loan amount you qualify for. Just because you can qualify for a $300,000 loan doesn’t mean you can comfortably handle the monthly payments that come with it along with your other financial obligations.”

Missing Out on Assistance Programs That Can Help 

Saving up for the upfront costs of homeownership takes some careful planning. You’ve got to think about your closing costs, down payment, and more. And if you don’t work with a team of experienced professionals, you could miss out on programs out there that can make a big difference for you. This is happening more than you realize.

According to Realtor.com, almost 80% of first-time buyers qualify for down payment assistance – but only 13% actually take advantage of those programs. So, talk to a lender about your options. Whether you’re buying your first house or your fifth, there may be a program that can help.

Not Leaning on the Expertise of a Pro

This last one may be the most important of all. The very best way to avoid making a mistake that’s going to cost you is to lean on a pro. With the right team of experts, you can easily dodge these missteps.

Bottom Line

The good news is you don’t have to deal with any of these headaches. Connect with a local real estate agent so you have a pro on your side who can help you avoid these costly mistakes.

Read more at KeepingCurrentMatters.com

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