There has been a noticeable decline in inflation rates recently, and all eyes are on the Fed to see whether their statement and press conference to be issued next Wednesday will signal a relief in interest rates. It is anticipated this declining inflation trend will finally influence the actions of central banks and policymakers.

One of the key consequences of declining inflation is the potential for a corresponding drop in interest rates. As inflation drops, central banks often respond by adjusting their monetary policies to stimulate economic growth. Lowering interest rates is a common strategy to encourage borrowing and spending, as it reduces the cost of obtaining credit for consumers and businesses. In this scenario, we may see a decrease in mortgage rates, giving prospective buyers a much needed break.

Consequently, a drop in interest rates is likely to trigger a spike in buyer activity within the housing market. With more affordable financing options available, aspiring homeowners may be encouraged to enter the market, resulting in increased demand for residential properties.

Higher demand in the housing market, coupled with limited housing inventory, creates a strong possibility there will be a notable uptick in home prices as sellers capitalize on increased buyer interest, strengthening the seller's market and giving sellers even more leverage in negotiations.

Buyer’s who can afford the monthly payment at today’s interest rates can lock in a contract at today’s prices and refinance if rates go down. Those who wait for rates to go down may miss out on home prices that may never be this low again!