🧠 Fed Cuts, Rates Rise? Here’s What’s Really Going On and Why It Matters for Silicon Valley Buyers & Sellers

If you’ve been watching the headlines, you might be feeling a little whiplash:

📉 The Fed lowered rates!
📈 Mortgage rates jumped!

It sounds contradictory but here’s why it’s not.

💡 The Fed Doesn’t Directly Set Mortgage Rates

The Federal Reserve controls the Fed Funds Rate, which affects short-term lending like credit cards, car loans, and some home equity lines.

Mortgage rates, on the other hand, are influenced by long-term bond yields and investor expectations around inflation and economic growth.

So, when the Fed cuts rates, investors sometimes anticipate higher inflation ahead. That can actually push mortgage rates up instead of down.

🏠 What This Means for Silicon Valley Buyers

Silicon Valley buyers are among the most informed in the nation. You understand that it’s nearly impossible to time the market perfectly.

The best time to buy is when it aligns with your lifestyle and long-term goals not the daily news cycle. Rates can always be refinanced later, but the right home in the right neighborhood may not come around twice.

💼 What This Means for Sellers

If you’ve been thinking of selling but feel hesitant as the year winds down, remember this: the market rewards readiness, not waiting.

Inventory typically tightens in late fall and early winter, which means your home has less competition and the buyers still shopping now are often the most serious.

With the right presentation, pricing, and strategy, you can make the market work for you regardless of rate noise.

🏡 Bottom Line

The best time to buy or sell is when it aligns with your life, not the headlines. Because rates can change, but your dream home (or your ideal buyer) won’t wait forever.

If you’re ready to discuss your next move or simply want clarity about how national rate changes affect our local Silicon Valley market let’s connect.

📧 april@apriltavares.com
🌐 IniguezAndTavaresTeam.com
👩‍💼 April Tavares, Realtor®, GRI | Iniguez & Tavares Team at Keller Williams Thrive
CA DRE #01742179