November Newsletter

Fall 2024 13 Foot Ceilings Where Real Estate and the PNW lifestyle meet

Did someone say Fall?  Summer has exited stage left, and now it's time to bring out the layers, cheer for the Hawks, lament the Mariners, and get those Halloween costumes ready. Dare I say it three times? Beetlejuice. Beetlejuice. Beetlejuice. More on that to come... Holy Rate Cut! (We’ve been waiting to say that for some time now.) This week, the Federal Reserve surprised everyone by cutting interest rates by 50 basis points (0.50%), bringing them down to a range of 4.75% to 5%. This is the first rate cut since the early days of the Covid-19 pandemic, and it was a bigger move than many expected. Before the decision, experts were divided: 61% thought the Fed would go with a 50bps cut, while 39% predicted a smaller 25bps cut. The larger cut shows that the Fed is focused on keeping the economy stable and avoiding problems in the job market. What really caught people off guard were the Fed’s comments afterward. Jerome Powell, the Fed Chair, suggested there could be another 50bps cut before the end of 2024. On top of that, there’s talk of a full percentage point cut by 2025 and even more reductions in 2026. It looks like the Fed is planning to lower rates for a while, much longer than most people expected. How This Affects Mortgage Rates While the Federal Reserve doesn’t set mortgage rates directly, its actions have a big impact on them. Mortgage rates were already starting to dip before this announcement, and now with this larger cut, we could see rates fall even more. That’s good news for anyone looking to buy a home or refinance, as borrowing could become cheaper. However, it’s important to remember that mortgage rates also depend on other factors like long-term bonds and how lenders react to the news. So while the Fed’s rate cut will probably push rates lower, we’ll have to see exactly how much. Uncertainty Around the Election Normally, a rate cut like this would make people more optimistic about the economy. But with a presidential election coming up, this year is anything but normal. Elections often cause uncertainty, and many people may hold off on big financial decisions, like buying a house, until after November. People are wondering how future policies, especially around taxes and regulations, might affect the economy and their finances. What About the Job Market? Another big question mark is the job market. Even though unemployment is still low, the Fed expects it to rise gradually to 4.0% by the end of 2024. Slower job growth over the next few years could make people feel less confident about the economy. One of the key concerns is when hiring will pick up again. While rate cuts are meant to help stabilize things, it can take time for job growth to follow suit. Until we see more activity in the job market, people might be reluctant to make major financial moves. A Look Ahead: Lower Rates for the Long Term The Fed is signaling that we might see interest rates drop gradually over the next few years. Along with this week’s 50bps cut, there’s talk of another cut by the end of 2024, with further reductions by 2025 and beyond. For everyone, this could mean lower borrowing costs for things like home loans, car loans, and credit cards, which should help increase demand over time. But with all the political and economic uncertainties still in play, it might take a while for people to really feel the benefits. The Bottom Line: Patience is Key While this rate cut is a step in the right direction, there are still plenty of things weighing on the broader market. Election uncertainty and a slow job market are big factors that could keep folks cautious. Mortgage rates may keep falling, but a full recovery will likely depend on how fast hiring picks up and what happens with this election. For now, the best approach is to stay patient. Lower rates are a positive sign, but they’re just one piece of a bigger puzzle. We would love to hear your thoughts. Thanks for reading! - Casey and Brandon

Brandon and Casey's Top 3 of the month Beetlejuice Beetlejuice If you're looking for a fun movie night recommendation, the new Beetlejuice sequel, is a must-watch! It brings back the spooky, comedic charm of the original, with fresh faces and exciting twists. Perfect for some lighthearted fun—and a good reminder that in real estate, you never know what surprises might come your way. - Brandon and Casey Shibuya Hi-Fi Vinyl Bar Last weekend, I swung by Shibuya Hi-Fi in Ballard to vibe out to Biggie’s Ready to Die album on their killer sound system. It was the perfect mix of iconic hip-hop and a cozy, laid-back vibe that made it feel like my own personal listening room. If you're into great music and even better sound, this spot is definitely worth a visit! -Casey Slant Rhymes: Alex Webb & Rebecca Norris Webb I recently grabbed Slant Rhymes for my place, and it’s the perfect coffee table upgrade. This stunning book is a collaboration between photographers Alex Webb and Rebecca Norris Webb, and let’s talk about that green burlap cover—it’s a must-have for any space. - Casey

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Denny Triangle 2510 6th Avenue, Unit 1606 1 BD 1 BA 531 SF $530,000

Belltown 2440 Western Avenue, Unit 415 1 BD 1 BA 548 SF $375,000

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Compass is a licensed real estate broker. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.

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