Quick take: Mortgage rates have ticked down again, the Fed just cut its policy rate, and policymakers are openly talking about more cuts if the job market softens. Translation: demand is likely to heat up. If you’ve been waiting on the sidelines, this is your window—before prices get bid up as more buyers jump back in.

What changed—fast

• Mortgage rates moved down again. Freddie Mac’s weekly survey put the 30-year fixed at 6.26% as of September 18, 2025—the third straight weekly drop. Freddie Mac

• The Fed cut rates on September 17, 2025, taking the federal funds rate to 4.00%–4.25% and signaled it’s prepared to do more if needed. Federal Reserve

• Officials are discussing additional cuts. Minneapolis Fed President Neel Kashkari said two more cuts this year could be appropriate, reflecting growing concern about labor-market cooling. Markets are also pricing in the risk of further easing. Reuters+1

Why it matters for housing

Mortgage rates follow longer-term bond yields (not the Fed rate directly), but when the Fed signals easier policy—and inflation is trending in the right direction—yields fall and mortgage rates usually follow. August CPI ran 2.9% year-over-year with core inflation at 3.1%, keeping the door open for a gentler policy path. Bureau of Labor Statistics

We’re already seeing a response from would-be borrowers:

• Mortgage applications jumped ~30% week over week in the latest MBA survey (Labor Day adjusted), with refis comprising the biggest share since early 2022. That’s momentum. MBA

On the resale side, conditions remain tight enough that fresh demand can squeeze inventory:

• Existing-home sales ticked up in July to a 4.01M SAAR, with 4.6 months of supply—better than last year, but still below a truly balanced market. If rates drift into the mid-6s or lower, expect more buyers to re-enter, compressing supply and firming prices. National Association of REALTORS®

Buyers: how to play it

No fluff—here’s the move set that works when rates are slipping and demand is rebuilding:

1. Get fully underwritten, not just pre-qualified. Strong files win when multiple offers return.

2. Use a lock-and-shop with a float-down. Lock today’s lower rate and keep the option to drop if pricing improves before closing. (Lenders’ rules vary—ask us which local lenders actually honor useful float-down terms.)

3. Leverage buydowns smartly. Temporary 2-1 buydowns can bridge affordability; permanent buydowns make sense if you’ll hold the loan.

4. Be first in line. Tour new listings Day 1; write clean, decisive offers with tight timelines.

5. Shop for payment, not just price. A quarter-point rate improvement often matters more to your monthly number than squeezing a few thousand off list.

Sellers: what to expect (and how to win)

• More eyeballs, more showings. Lower rates widen the buyer pool.

• Price to the moment, not last year. Overpricing kills momentum; strategic pricing + strong presentation (clean, staged, updated photos) attracts multiple offers.

• Concessions are leverage, not weakness. Offering a credit that helps the buyer reduce their rate can net you a better price and faster close.

The big picture—why “now” actually matters

• The Fed cut and is discussing more cuts if data warrant it. Housing is ultra-sensitive to rate expectations; even talk of additional easing can move mortgage pricing. Federal Reserve+1

• Rates are already responding, and application volume is bouncing. If this continues, expect competition to intensify and prices to firm as we move through fall. Freddie Mac+1

Bottom line from Modern Heart Realty

If you want to buy before the crowd shows up, this is your window. If you’re selling, you’re heading into a better tape—just don’t get greedy on list price and you’ll capture the demand.

We track this data every week and know which lenders, programs, and negotiation tactics are actually working right now in Northeast Georgia. If you want a game plan specific to your budget and timeline, we’ll build it with you in a 15-minute call.

Sources

• Freddie Mac Primary Mortgage Market Survey (PMMS), Sept 18, 2025. Freddie Mac

• Federal Reserve, FOMC statement & implementation note, Sept 17, 2025. Federal Reserve+1

• Reuters, Kashkari sees two more cuts this year, Sept 19, 2025. Reuters

• Mortgage Bankers Association, Weekly Applications Survey, Sept 17, 2025. MBA

• National Association of REALTORS®, Existing-Home Sales – July 2025. National Association of REALTORS®

• BLS, Consumer Price Index – August 2025. Bureau of Labor Statistics

• CME FedWatch Tool, market-implied path (accessed Sept 19, 2025). CME Group