On September 17th, the Federal Reserve cut interest rates by a quarter point—the first cut this year. While mortgage rates dipped slightly, continuing a recent downward trend, some buyers may have hoped for more dramatic drops. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.26% the week of the Fed’s announcement—still higher than the 6.09% average a year ago.
So what does this mean for our local South Shore & Greater Boston real estate market? Let’s break it down.
Why Mortgage Rates Don’t Move in Perfect Step With the Fed
The Fed sets the federal funds rate—the rate at which banks lend to one another. Mortgage rates, however, tend to follow Treasury yields and broader economic signals. Markets had already anticipated this cut, so the adjustment was largely “priced in,” meaning we may not see significant short-term changes.
Buyers Exploring Adjustable-Rate Mortgages
One ripple effect of the Fed’s action is renewed interest in adjustable-rate mortgages (ARMs). ARMs are becoming more popular, now making up about 13% of applications—the highest since 2008. Unlike risky pre-2008 versions, today’s ARMs typically lock in rates for 5, 7, or 10 years, and currently offer about 0.75% lower rates compared to 30-year fixed loans. For buyers looking to maximize affordability in our competitive local market, this option may be worth considering.
Mortgage Applications on the Rise
Mortgage applications have increased 3% week-over-week and are up 20% year-over-year, signaling renewed buyer activity. However, this hasn’t yet translated into a big jump in closed sales—existing-home sales were only up 2% month-over-month and just 0.8% year-over-year. Still, increased applications suggest that buyers are gearing up for opportunities ahead.
What This Means for South Shore & Greater Boston
For buyers: Even small shifts in mortgage rates can significantly impact affordability here in South Shore and Greater Boston, where desirable homes move quickly. Exploring different loan products—and shopping around for the best rate—can make a meaningful difference.
For sellers: Lower rates and increased buyer applications hint at more demand in the coming months. Preparing your home now could position you well as motivated buyers re-enter the market.
Our Advice: Shop Smart & Lean on Local Expertise
Mortgage rates can vary widely between lenders, so getting multiple quotes is essential. At The Jenkins Group, we connect our clients with trusted local lenders who understand the South Shore & Greater Boston market.
💡 Want our Trusted Vendor List? Whether you need a lender, attorney, contractor, or stager, we’ve got you covered with professionals we know and trust.
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If you’re considering buying or selling in the months ahead, we’d love to sit down and talk strategy. Even a half-point shift in rates could change what’s possible for your goals—and we’re here to help you make the most of it.
📲 Reach out to The Jenkins Group today to start planning your next move.
