TREASURE VALLEY, Idaho — Homebuyers in the Treasure Valley are waiting for a shift in the housing market, with mortgage rates hovering around 6.5%.
That could change in the coming weeks when the Federal Reserve meets Sept. 17.
WATCH: How to prepare for potential mortgage rate cuts in the Treasure Valley.
“We’re kind of waiting, pins and needles, to see how much they’re going to lower it,” said Jason Brown, a mortgage broker with Preferred Mortgage. “But Jerome Powell did kind of give us a clue that we are going to see lower rates no matter what.”
Brown said if rates dip, home prices are likely to climb, meaning waiting could cost buyers more.
“I would encourage any buyer, if you’re sitting on the couch, don’t wait anymore because as soon as rates do come down, the word gets out,” Brown said. “We’re going to see instant equity in homes going up, and home prices are going to go up.”
Some buyers are turning to “buy-downs,” temporary interest-rate reductions funded by seller credits.
“They apply it towards buying down the interest rate. And it’s usually 1%, 2% or 3%... depending on the program,” Brown said.
But in today’s market, Brown said it often makes more sense to negotiate a lower price and refinance later.
“Any loan you’re going to get into today, it’s temporary,” he said. “And when the rates do come down, we’re going to come back and we’re going to refinance you.”
Well-priced homes are still moving quickly in Boise, fueled by steady population growth across the Treasure Valley.
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“I’ve seen homes that come on the market on a Thursday and they’re [under] contract by Friday because the home shows well, they had the right realtor, and it was the right price,” Brown said.
Experts say the housing market is poised to heat up once rates begin to fall. They advise buyers to have their finances ready before the Fed meets later this month.
