If you’ve been keeping an eye on the housing market, you’ve likely noticed that mortgage rates don’t just move—they jump, dip, and shift in unexpected ways. One day they’re up, the next they’re down. But why does this happen?

Let’s break down the basics of what moves mortgage rates—and why being prepared to act quickly when rates shift can make all the difference.

It’s Not Just the Fed: The Bond Market Is the Real Star

While the Federal Reserve’s interest rate decisions definitely influence mortgage rates, they don’t directly set them. Instead, long-term bond markets, including Treasury yields and mortgage-backed securities (MBS), play a major role.

When investors expect interest rates to fall or economic growth to slow, they often buy more bonds. This increased demand drives bond yields down, and mortgage rates typically follow. That’s why sometimes, even when the Fed hasn’t made a move, mortgage rates can still drop quickly.

What’s Happening Now?

As of today, mortgage rates have dipped from their 2024 highs, hovering in the low 6% range for 30-year fixed loans. This is thanks to a mix of:

• Slower-than-expected job growth
  
  
• Hints of an economic slowdown
  
  
• Growing belief that the Fed may cut interest rates soon
  
  
• Shifts in investor appetite for certain types of mortgage bonds
  
  

Put simply, the market is adjusting—and that means opportunities for homebuyers.

What Are the Expectations in the Coming Months?

Most experts believe that mortgage rates could trend lower, especially if inflation remains under control and the economy slows. However, this path isn’t guaranteed.

What we do know is this: when rates start falling quickly, they can create windows of opportunity. But those windows don’t stay open forever. This is why having your finances, pre-approval, and property wishlist ready is so important.

Why It Pays to Be Prepared

When mortgage rates drop, homes become more affordable—but they also become more competitive. The best properties can go fast when buyers suddenly regain purchasing power.

Whether you’re searching for a cozy cottage, a waterfront escape, or a family-friendly home near top schools, being ready means you can:

• Lock in a great rate before the next market move
  
  
• Act quickly on new listings
  
  
• Maximize your buying power
  
  

Working with a local expert—like the team at Atlantic Salt Realty—ensures you’re not just reacting to market changes, but anticipating them.

Ready to Find the Right Home at the Right Time?

We’re here to help you navigate every step of the journey—from understanding mortgage trends to finding the perfect home on the coast. Whether you're dreaming of low-country charm, riverfront relaxation, or a lifestyle built around nature and community, now is a great time to be prepared.

Contact Atlantic Salt Realty today to get expert guidance on the local market and start positioning yourself for success in the months ahead.