What did the Federal Reserve have to say on interest rates?

Downtown Pittsburgh, PA | mortgage rate news

What did the Federal Reserve announce on Wednesday?

According to a recent report from CNBC, there’s virtually no chance the Federal Reserve will choose to raise its benchmark borrowing rates today. So, what will the Fed do on Wednesday? First, the Fed will likely announce a pause in interest rate hikes. Second, the Fed will provide a quarterly update on several key economic indicators. Interest rates, gross domestic product, inflation and unemployment will be areas of focus.

There’s also widespread belief among experts and Fed watchers that they will take a tone that indicates there shouldn’t be assumptions about what happens next. How the market reacts often depends on the tone Chairman Jerome Powell takes during his press conference. If he comes across as hawkish, the market may sell. If he’s overly dove-ish, it may come across as a time to buy.The good news is that the Federal Reserve held interest rates steady yesterday as they choose to keep interest rates where they’re currently at. However, they did indicate that they would hike interest rates one more time this year at either the November or December meeting.

The announcement sent most analysts to revise their 2024 predictions as the Fed made it sound like interest rates would remain higher for longer as they continue their fight against inflation.

The national average for a 30-year, fixed-rate mortgage ended Wednesday up 0.03% to 7.33%*. That’s still off the highs we saw in August. It will be interesting to see how the market reacts the day after. We may also get additional guidance when the Fed presidents speak on Friday.

Which popular housing markets have affordable listings?

A recent report showed that new home listings continue to increase month-over-month. With the increase in available homes, a few of the most popular markets in the country are seeing prices start to soften. Which markets, you ask?

Dallas-Fort Worth has triple the national average of active property listings available.

Bentonville, AR is known as one of the more affordable housing markets in the country, has seen an increase in available listings, and is home to Walmart’s corporate headquarters.

Detroit is often listed among the most affordable metro areas in the country. In fact, Forbes Advisor ranked it as the most affordable city in 2023.

Atlanta may also become a bit more affordable in the upcoming months. The Atlanta metro area has seen 7,132 single-family home permits approved from May 2023 to July 2023. There should be a lot more homes coming to the area in the next few months.

Pittsburgh to re-develop downtown commercial real estate

A new private market offering is available for a redevelopment project to re-imagine a commercial property in downtown Pittsburgh.

GNC holdings former headquarters at 300 6th Ave. is being converted into a mixed-use development. The 218,255 sq. ft. building will be redeveloped into 253 apartments with 14,000 sq. ft. of ground floor retails space.

The building itself dates to 1904 and was designed by architect Daniel Burnham. Construction on the project is slated to finish in October 2024.

Cities have seen successful conversions of commercial real estate into centrally located housing for the past year. This is a trend that could continue to add housing units to a market that needs them and potentially help housing prices cool off.

* National average rates accurate as of 9/20/23 from MortgageNewsDaily.com and are not advertised rates from Guaranteed Rate.

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