Every home buyer or seller is probably wondering what the Federal Reserve will do for the rest of the year and into next year.
Buyers are asking themselves, 'Should I buy now or wait for rates to drop further?'
Sellers are considering, 'Should I sell now or wait, so I don’t leave money on the table?'
One of the best tools to help with this decision-making is the CME FedWatch Tool.
Here’s what the CME FedWatch Tool does:
Predicts Rate Hikes or Cuts: It offers probabilities for whether the Fed will raise, cut, or maintain the current interest rate during its next meeting.
Market Sentiment: It shows how the market is pricing in the likelihood of rate changes, providing insights into expectations.
Updated in Real-Time: As market conditions shift, the tool updates its probability estimates in real-time.
The current rate(benchmark rate) is 4.75%–5.00%.
The chances the feds lowering the rate by a quarter percentage point is 50%.
And them doing a half percentage is 49%.
This indicates that market sentiment is leaning toward the Federal Reserve reducing rates by another 50 basis points, making this scenario increasingly likely.
We could be looking at another 0.50% rate cut.