The Federal Reserve meeting has concluded, and as we anticipated, they have chosen to hold the Federal Funds Rate steady. While the headlines might simply say “Fed Pauses,” the details behind the decision paint a clearer picture of where we are heading in 2026.
The Labor Market is the Key For a long time, the Fed only cared about inflation. That is changing. They are now closely watching employment data. As I mentioned earlier this week, the private labor market is softening. We are seeing average weekly job gains drop significantly (down to ~7,750 recently).
Bad news for the economy is often “good” news for mortgage rates. This weakness gives the Fed permission to lower rates later this year to support the economy.
The Housing Reality While we wait for rates to come down, housing values are not waiting. We have confirmed data showing four consecutive months of home price appreciation.
This creates a specific dynamic:
-
Scenario A: You wait for rates to drop. Demand spikes. Home prices jump higher. You pay less in interest but more for the house.
-
Scenario B: You buy now. You lock in the price before the spike. You refinance later if/when rates drop.
The Bottom Line The Fed is in a “wait and see” mode, but the housing market is moving. If you are sitting on the sidelines hoping for the perfect bottom, you might miss the boat entirely.
I am here to help you navigate this. If you want to see how these numbers impact your purchasing power, give me a call.
The Federal Reserve meeting has concluded, and as we anticipated, they have chosen to hold the Federal Funds Rate steady. While the headlines might simply say “Fed Pauses,” the details behind the decision paint a clearer picture of where we are heading in 2026.
The Labor Market is the Key For a long time, the Fed only cared about inflation. That is changing. They are now closely watching employment data. As I mentioned earlier this week, the private labor market is softening. We are seeing average weekly job gains drop significantly (down to ~7,750 recently).
Bad news for the economy is often “good” news for mortgage rates. This weakness gives the Fed permission to lower rates later this year to support the economy.
The Housing Reality While we wait for rates to come down, housing values are not waiting. We have confirmed data showing four consecutive months of home price appreciation.
This creates a specific dynamic:
-
Scenario A: You wait for rates to drop. Demand spikes. Home prices jump higher. You pay less in interest but more for the house.
-
Scenario B: You buy now. You lock in the price before the spike. You refinance later if/when rates drop.
The Bottom Line The Fed is in a “wait and see” mode, but the housing market is moving. If you are sitting on the sidelines hoping for the perfect bottom, you might miss the boat entirely.
I am here to help you navigate this. If you want to see how these numbers impact your purchasing power, give me a call.
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Sal Trapani, Mortgage Banker & Owner, MJ Mortgage LLC, 281-608-2846 cell, sal@mjmortgagellc.com, www.mjmortgagellc.com, Magnolia, TX 77354, NMLS 1055510 / NMLS 2381195