Each week, “Just Reduced” spotlights properties in Arlington County whose price have been cut over the previous week. The market summary is crafted by Arlington Realty, Inc. Maximize your real estate investment with the team by visiting www.arlingtonrealtyinc.com or calling 703-836-6000 today!
Please note: While Arlington Realty, Inc. provides this information for the community, it may not be the listing company of these homes.
As of October 7, there are 132 detached homes, 38 townhouses and 153 condos for sale throughout Arlington County. In total, 33 homes experienced a price reduction in the past week, including:
Please note that this is solely a selection of Just Reduced properties available in Arlington County. For a complete list of properties within your target budget and specifications, contact Arlington Realty, Inc.
This regularly scheduled sponsored column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater D.C. Metro area, you can reach him directly at Eli@EliResidential.com.
Eli and his team believe that your real estate needs should be managed by advisors, not salespeople. Their mission is to guide, educate, and advocate for their clients through real advice, hands-on support, and personalized service.
Question: I have heard that inventory is building and the market is starting to favor buyers. Is that accurate?
Answer: I have preached for years the importance of caution and care when applying real estate data to your own decision-making. National real estate data is rarely useful, regional real estate data is sometimes useful, and even local data can be full of misleading conclusions.
It’s quite likely you’ve started to hear news and see data showing significant inventory build-up and markets shifting to favor buyers. We have seen modest market shifts in Northern Virginia, but nothing like what other regions of the country are experiencing, which is the source of most of the newsworthy reports you may see.
I recently came across this fantastic chart illustrating how housing market conditions are in different regions of the country. The bigger the green bar, the more favorable the market is for sellers, the smaller it is, the more favorable the market is for buyers.
Regional | In today’s resale housing market
Inventory Levels and Demand Drive Price Momentum
The green bars above illustrate demand levels against inventory and provides a good indication of how prices might react in the coming months/year, the charts below show how inventory levels have changed by state over the past 12 months and five years (pre-pandemic levels) and are also a good indicator of future price movement.
Sun Belt and Mountain West markets are seeing a faster return to pre-pandemic inventory levels
Many of the markets seeing the biggest buyer-favorable swings (more inventory) saw greater home price growth during the pandemic housing boom
Northeast and Midwest markets have lower levels of homebuilding (new supply)
Chart: ResiClub Source: Realtor.com
It’s Good to be in the DMV
Attom Data released a report on Sept. 6th analyzing 589 counties to determine the risk of a housing downturn based on:
% of homes facing possible foreclosure
underwater mortgages
% of income to buy
median sales price
local unemployment rates
The metropolitan areas around New York City, NY, Chicago, IL, as well as broad stretches of California, the Southwest, and Florida are considered most vulnerable to a housing downturn.
Virginia had eight of the least-at-risk jurisdictions, including Arlington County, City of Alexandria, Fairfax County and Loudoun County. This is the story of real estate ownership in the greater D.C. Metro area — we may lagged other regions in appreciation during the pandemic boom, but we can sleep comfortably now as many markets are facing a risky future.
Counties With Greatest Risk of a Housing Downturn. Source: ATTOM Data Solutions
If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at [email protected].
If you’d like a question answered in my weekly column or to discuss buying, selling, renting, or investing, please send an email to [email protected]. To read any of my older posts, visit the blog section of my website at EliResidential.com. Call me directly at (703) 539-2529.
Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with RLAH Real Estate, 4040 N Fairfax Dr #10C Arlington VA 22203. (703) 390-9460.
This is a sponsored column by attorneys John Berry and Kimberly Berry of Berry & Berry, PLLC, an employment and labor law firm located in Northern Virginia that specializes in federal employee, security clearance, retirement and private sector employee matters.
By Melissa L. Watkins, Esq.
Our lawyers represent individuals before the Defense Office of Hearings and Appeals (DOHA) in cases involving their security clearances.
It is important to have legal representation during the DOHA hearing process, which can be very similar to typical court proceedings. The following is the process that one might expect at a security clearance hearing before a DOHA administrative judge.
How DOHA Cases Usually Start
DOHA cases typically begin when a federal contractor, military, or federal employee receives a Statement of Reasons (SOR) from the Defense Counterintelligence and Security Agency (DCSA). In submitting their response, the individual will have the choice of having their case heard by an administrative judge at DOHA or reviewed based on the written record. The process varies a bit based on whether the individual is employed by the government or is a government contractor. However, when a choice is made, electing a hearing before a DOHA Administrative Judge is our usual recommended choice.
Differences Between Contractors and Federal Employees
There are differences in the DOHA process for government contractors, military personnel, and federal employees. For instance, DOHA decisions for government contractors are binding. For federal employees and military personnel, DOHA decisions are recommended, and they will then be reviewed by other agency personnel for final decision. A DOHA Hearing for federal employees and military personnel is also known as a Personal Appearance as opposed to a hearing. However, no matter what type of employee one is, the DOHA hearing process is pretty similar.
Ten talented student poets from Arlington Public Schools have been chosen as winners of the Moving Words Student Competition in 2024!
Out of 415 submissions from 266 students, these standout poems will soon be seen by thousands of Arlington commuters as they grace ART buses across the county from October 2024 through March 2025.
Open to students of all ages, the competition invited submissions of short poems, 10 lines or fewer. Juror Simon Shieh handpicked the winners, whose poems will brighten the daily commutes with vibrant placards featured aboard local buses. The winning works will also be showcased on ArlingtonArts.org and archived on Arlington County’s CommuterPage.com.
This annual event, held each spring, is a collaboration between Arlington Cultural Affairs and the Arlington Public Schools Humanities Project, with support from Arlington Transit. The competition aligns with the Humanities Project’s Pick A Poet program, where professional poets visit APS classrooms to inspire students.
These visiting poets spark creativity, ignite intellectual curiosity, and encourage students to explore their own voices through poetry — culminating in the chance to be part of the Moving Words competition and have their work displayed all around the county.
This is a celebration of local creativity and a unique way to make poetry a part of everyday life in Arlington! The main Moving Words Poetry Competition will be open for submissions during the month of November, with the winning poems installed from April through September. Bookmark the Moving Words page on the ArlingtonArts website and follow us on social media to get the latest updates!
“A Deer in Spring” by Hattie Montague (2nd Grade, Montessori Public School of Arlington)
“Untitled” by Dhalia (5th Grade, Arlington Traditional School)
“Untitled” by Juliette Ponteuf Warner (2nd Grade, Glebe Elementary School)
“Untitled” by Lillian Brinkman (5th Grade, Arlington Traditional School)
“Untitled” by Jimmy Daley (8th Grade, Dorothy Hamm Middle School)
“Untitled” by Nina Jaeckel (8th Grade, Dorothy Hamm Middle School)
“please leave a message after the tone” by Blue (8th Grade, Dorothy Hamm Middle School)
“Untitled” by Ambika S. (8th Grade, Dorothy Hamm Middle School)
“For the postponed” byJulian Osmanov-Fitzgerald (12th Grade, Wakefield High School)
“Public Transit” by Samantha Phipps (10th Grade, Wakefield High School)
2024 Moving Words Student Competition Honorable Mentions
“London” by Alina Ahmad (2nd Grade, Campbell Elementary School)
“Summer Stream” by Liana Mitchell (2nd Grade, Montessori Public School of Arlington)
“Untitled” by Lucas Young (8th Grade, Dorothy Hamm Middle School)
“Untitled” by Susannah Holt (8th Grade, Dorothy Hamm Middle School)
“Untitled” by Marwa Marhrim (8th Grade, Dorothy Hamm Middle School)
“Untitled” by Ella Schaufelberger (8th Grade, Dorothy Hamm Middle School)
“Untitled” by Kira Kettler (10th Grade, Washington-Liberty High School)
“Untitled” by Julian Osmanov-Fitzgerald (12th Grade, Wakefield High School)
“Untitled” by Mauro Fonseca Urrutia (10th Grade, Wakefield High School)
About Juror Simon Shieh
Simon Shieh is a poet, writer, and educator, and the author of Master (Sarabande Books, 2023). His poems and essays are published in Poetry, American Poetry Review, Best New Poets, Guernica, and The Yale Review, among others, and have been recognized with a National Endowment for the Arts Literature fellowship and a Ruth Lilly and Dorothy Sargent Rosenberg Fellowship from the Poetry Foundation.
About Arlington Cultural Affairs
Arlington Cultural Affairs, a division of Arlington Economic Development, delivers public activities and programs as Arlington Arts. The division’s mission is to create, support, and promote the arts, connecting artists and community to reflect the diversity of Arlington.
Cultural Affairs provides material support to artists and arts organizations in the form of grants, facilities and theater technology; integrates award-winning public art into the County’s built environment; and presents high-quality performing, literary, visual and new media programs across the County.
Each week, “Just Reduced” spotlights properties in Arlington County whose price have been cut over the previous week. The market summary is crafted by Arlington Realty, Inc. Maximize your real estate investment with the team by visiting www.arlingtonrealtyinc.com or calling 703-836-6000 today!
Please note: While Arlington Realty, Inc. provides this information for the community, it may not be the listing company of these homes.
As of September 30, there are 125 detached homes, 38 townhouses and 161 condos for sale throughout Arlington County. In total, 32 homes experienced a price reduction in the past week, including:
Please note that this is solely a selection of Just Reduced properties available in Arlington County. For a complete list of properties within your target budget and specifications, contact Arlington Realty, Inc.
This regularly scheduled sponsored column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater D.C. Metro area, you can reach him directly at Eli@EliResidential.com.
Eli and his team believe that your real estate needs should be managed by advisors, not salespeople. Their mission is to guide, educate, and advocate for their clients through real advice, hands-on support, and personalized service.
Question: What do you think about the ruling against Missing Middle?
Answer: It’s a joke amongst realtors that if you want to do some business, go on vacation, and your phone will start ringing. I guess the same goes for me getting the Breaking News that Missing Middle/EHO has been overturned by Judge Shell as I head out of town.
So instead of my planned article comparing our local/regional housing market to the rest of the country, I’m going to share my first thoughts on Missing Middle getting thrown out while I wait for my flight.
Good Riddance Missing Middle (v1.0)
I support the idea of bringing actual Missing Middle housing to Arlington by creating broader, more flexible zoning policy so the market can supply the type of housing we lack and the type of housing that’s in demand (3-4BR homes with ~1,500-3,000 sq. ft. and some yard space), but I did not support the version of Missing Middle/EHO in the recently overturned policy.
Speaking purely from a housing market perspective (leaving aside my personal concerns as an Arlingtonian), I had two main issues with it:
It didn’t allow for the construction of the type/size of homes that I think are most in demand and missing from Arlington. It also didn’t properly incentivize construction of the type/size of homes allowed in the v1.0 policy that was closest to what was most in demand and missing from the Arlington market (duplex and three townhouse developments).
The policy did not properly incentivize the type/size of housing that most aligned to demand and missing supply so naturally, builders were incentivized for more density (4-6 unit multi-family units) and the result was the majority of units applied for/approved under Missing Middle were of the size and type that we currently have the most supply of… 1-2BR condos and apartments, which I wrote in Nov. 2023 meant that Missing Middle was not achieving its goals (and a failed policy)
We got v1.0 wrong. I say v1.0 (my label, not the County’s) because I have no doubt our community and County Board will continue to work on v2.0 of Missing Middle/EHO to develop a more thoughtful policy.
How We Can Get v2.0 Right
There are tons of people more qualified to offer opinions on how to do Missing Middle right, but I’ll offer some here:
Start with Honesty: Be honest about what we’re trying to achieve. Is it making Arlington housing more affordable? Then let’s talk about housing affordability and Affordable Housing, not Missing Middle. Is it about making North Arlington schools and neighborhoods more socioeconomically diverse? Then let’s have that conversation, not Missing Middle. But if the goal is allowing the market to build housing, that’s lacking in supply and high in demand, then let’s discuss a better implementation of Missing Middle housing.
Build Actual Missing Middle: The v1.0 policy brought us too much of what we already had in high supply and not enough of what was actually missing from our market. Set a clear intention to bring certain types/sizes of housing to the market where there are currently gaps and work backwards to build a policy for the intended outcome.
Engage the Builder Community: I can’t recall where I read it, but one of the most shocking things I learned was that the County was intentional about not giving the builder community (and those in similar fields, like local architects/engineers) a seat at the table in planning because they didn’t want to give the impression they were doing this to line builders’ pockets (though plenty accused the County of it anyway). The County must understand how their policy will be implemented by builders and work together with them to create a policy that properly incentivizes the market to build the desired product.
Vary Zoning Policy by Location: Allow for higher density and smaller units (multi-family) primarily along high-traffic corridors like Glebe, George Mason, Carlin Springs, etc where redevelopment of old, obsolete housing is slower under the current single-family zoning. Strongly consider allowing/encouraging assemblages of adjacent lots along these corridors to promote a broader range of development (townhouses/duplex). Taper/adjust the zoning code to keep multi-family development where it makes sense (in Metro/walkable/commuter corridors) and do not allow multi-family style development inside neighborhoods.
Increase Parking Requirements: The v1.0 policy required just .5 or 1 parking space per unit and was going to result in a problematic number of cars being parked on neighborhood streets; many of those streets were already near or at capacity for parked cars. Create policy that is realistic about the numbers of cars that people will have in new Missing Middle housing and make sure there’s space for most/all on site.
This is far from an exhaustive list of priorities to consider in the next iteration of Missing Middle/EHO and doesn’t include significant ones, like infrastructure and environmental concerns.
My Big Question Is…
…What happens to the Missing Middle that has been approved or is under construction? There is no longer a zoning policy in place to for the County to issue a Certificate of Occupancy under and even if the County says they will honor approved permits, I imagine the neighbors will file suit and either prevent altogether or endlessly tie up the completion of a project in court. Get your popcorn ready…
If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at [email protected].
If you’d like a question answered in my weekly column or to discuss buying, selling, renting, or investing, please send an email to [email protected]. To read any of my older posts, visit the blog section of my website at EliResidential.com. Call me directly at (703) 539-2529.
Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with RLAH Real Estate, 4040 N Fairfax Dr #10C Arlington VA 22203. (703) 390-9460.
Just Listed highlights Arlington properties that just came on the market. This biweekly feature is written and sponsored by Coral Gundlach Homes.
Hello Arlington!
Coral Gundlach here with Coral Gundlach Homes in Arlington. I’ve been an Arlington homeowner since 2001 and a Realtor since 2004. I love this real estate market, even though it has its challenges.
We are well into the fall market and interest rates are finally down!
The excitement of this has brought a few more buyers off the bench and homes are being shown more and going under contract faster than in August. There is also more inventory, as expected and as is usual this time of year. The new listings in August were quite slim.
Because I took a little hiatus from this column, there won’t be historical comparisons from two weeks ago. The detached listings continue to be light, and those continue to see the most demand. Most new inventory is in the condo/co-op segment.
Here are the numbers as of the time of writing: Friday, September 27, 11 a.m.
All active listings in Arlington: 308
New Listings in the past week: 54
Under Contract/Pending in last week: 48
Median Days on Market for Active Under Contract: 18
Median Days on Market for Pending: 9
All active detached listings: 107
New active detached listings: 16
All active townhouses, fee simple: 27
New active townhouses, fee simple: 7
All active condos/co-ops: 173
New active condos/co-ops: 30
Thirty-one total properties closed in the last week. Of those, the median CDOM was 6, and the median original list price to sales price ratio was 100% and the average current list price to sales price ratio was also 100%.
Showing time tracks showings on listings and compares them to the last week and the same week last year. These stats are from the week ending September 22. For Arlington county, there were 847 showings scheduled compared to 755 the week prior. Another interesting metric is how many homes had a price decrease, for that week ending September 22, 9.7% of Arlington listings had a price decrease, compared to 5.2% the same week last year and 4.8 one week ago.
Contact Coral Gundlach Homes today at (703) 200-3631 or email [email protected] to talk more about buying or selling Arlington real estate.
Today’s featured listing is a fantastic all brick condo townhouse right by the East Falls Church Metro, listed by Ann McClure of McEnearney Associates. 6705 Washington Boulevard #G is a 3 level end unit, with 1836 square feet, 3 bedrooms, 2 full and 2 half baths and a fantastic fenced patio. It is loaded with updates, an open floor plan, and has an assigned parking spot.
The $445/month condo fee covers landscaping, pest control, trash collection, water/sewer, and snow removal. The location is awesome, across from the metro and just about a mile-ish to tons of shops and dining at Lee Harrison Center, Westover, and Falls Church City.
It is open on this Sunday, September 29 from 2-4 p.m.
Want to see more Just Listed properties? Interested in an Open House this weekend? We’re happy to show them to you privately! Contact Coral Gundlach Homes today.
Please note: While Coral Gundlach Homes provides this information for the community, they may not be the listing agents of these homes. Equal Housing Opportunity.
This sponsored column is by Law Office of James Montana PLLC. All questions about it should be directed to James Montana, Esq. and Janice Chen, Esq., practicing attorneys at The Law Office of James Montana PLLC, an immigration-focused law firm located in Falls Church, Virginia. The legal information given here is general in nature. If you want legal advice, contact us for an appointment.
As the election nears, our clients have been asking — with increasing frequency and understandable concern — about what a new president could do to alter our immigration system.
We’ve already examined former President Trump’s voluble and extraordinary policy proposals; in our view, Vice-President Harris has yet to provide sufficient detail on what she might do in the area, so we’re keeping our powder dry for when she does. The purpose of this article is to take a step back and talk about the legal architecture behind our immigration system, which both constrains and empowers any president.
Our immigration system: Not as tasty as tiramisu, but structurally similar.
Tiramisu is our preferred metaphor.
Federal immigration law can be usefully separated into layers. At the very top — a light dusting of cocoa powder and sugar — we have the Federal Constitution, and its (very brief) discussion of immigration, which is largely limited to empowering Congress to “establish a uniform rule of naturalization.”
This Constitutional mandate explicitly empowers Congress (and, by implication, disempowers the several states) to regulate immigration, which is one important reason why state lawsuits seeking to modify federal immigration policy face substantial roadblocks. The Constitution’s amendments concerning search and seizure, due process of law, and equal protection of the laws also occasionally — but rarely — impact the immigration system.
The sponge of the cake is statutory, and there are just three statutes of significance: the Immigration and Nationality Act of 1965, the Immigration Reform and Control Act of 1986, and the IIRAIRA (Illegal Immigration and Immigrant Responsibility Act) of 1996.
The first established the Preference System, under which certain categories of prospective immigrants, like unskilled workers and siblings of U.S. citizens, face extremely long waits, whereas other categories of prospective workers, like highly skilled workers and children of permanent residents, also face extremely long waits. The second is the Reagan Amnesty, which legalized large numbers of unauthorized migrants and introduced the I-9 system. The third, IIRAIRA, sharply curtailed the relief available to immigrants facing deportation and tightened the standards for financial responsibility for prospective permanent residents.
The binding of the cake is regulatory. Like most of American law, the regulatory apparatus has outgrown its statutory grounding to a striking degree. The Department of Homeland Security, and the Department of Labor issue regulations frequently which have massive effects on our immigration system — to name just one of recent vintage, the near-doubling of application prices.
The sugar — or absence thereof — is executive policy decisions.
The picture of Presidential power, with respect to our immigration laws, is therefore as follows:
No President can change the Constitution. With the exception of the 14th Amendment — and we all know how that came about — no Constitutional amendment concerning immigration has ever been ratified.
Very, very few presidents can pass a significant immigration statute. The list of those who have succeeded in living memory is short: Truman, Johnson, Reagan, Clinton. The list of those who have failed is much longer, particularly among recent presidents. President George W. Bush, President Obama, President Trump, and President Biden all promised substantial immigration legislation. Presidents Bush and Obama came closest, but all failed to pass significant immigration reform measures.
All modern presidents can promulgate regulations — more’s the pity — and all modern Presidents do. But our regulatory system is fraught with procedural complexity and delay, and can be combatted via litigation.
All modern presidents can announce executive policy changes, and all modern presidents do. Here is where the real action in immigration law is likely to be in the next administration. Presidents can use Congressionally granted power creatively, as President Biden did with Parole in Place and President Trump did with Title 42.
Most immigration benefits are a matter of statutory authority. Green cards are issued under the immediate relative and preference categories established by the Immigration and Nationality Act; without legislative changes, the administrative machinery will continue to rumble.
But, at the margins — at the border, in the immigration courts, and in its regulatory interpretations — a new President has substantial power to affect how the system operates. That power is not absolute, but it is substantial.
As always, we are grateful for your questions and comments, and will do our best to respond.
Each week, “Just Sold Condos” spotlights condos in Arlington that have sold over the previous week. The market summary is crafted by Rick Bosl, the Arlington Condo Expert, founder of ArlingtonCondo.com, and an agent with KW Metro Center. Contact Rick and make your next move the right move.
Welcome to Just Sold Condos in Arlington!
For Sale
Last week there were 22 condos that went to settlement, but only 7 condos that were taken off the market (expired, cancelled, or withdrawn). How does the condo market compare to the single-family home market in Arlington?
Numbers-wise, there are more condos that are sold every month in Arlington than single-family homes, as the chart below shows. Every month, for the past few years (and more) there have been consistently more condos (gold) sold than single-family homes (red) and townhomes (green) combined.
Closed Sales
The media often focuses on the single-family market, though. All the stories about a home getting 50 offers, that is most likely a single-family home. Why all the attention? One, people can see a house from the street, so it is more relatable and two, prices are much higher.
The chart below shows the median sales price of condos (gold), townhomes (green), and single-family homes (red) for the past 3 years in Arlington. Last month, single-family homes had a median price of $1,250,000, which was almost 3x the median sales price of a condo at $488,750.
Each week, “Just Reduced” spotlights properties in Arlington County whose price have been cut over the previous week. The market summary is crafted by Arlington Realty, Inc. Maximize your real estate investment with the team by visiting www.arlingtonrealtyinc.com or calling 703-836-6000 today!
Please note: While Arlington Realty, Inc. provides this information for the community, it may not be the listing company of these homes.
As of September 23, there are 126 detached homes, 34 townhouses and 163 condos for sale throughout Arlington County. In total, 35 homes experienced a price reduction in the past week, including:
Please note that this is solely a selection of Just Reduced properties available in Arlington County. For a complete list of properties within your target budget and specifications, contact Arlington Realty, Inc.
Arlington Economic Development (AED) is excited to be continuing its partnership with Citrine Angels, the largest female-focused angel investing organization in the mid-Atlantic region pledged solely to the support of women-led ventures.
With a shared goal to boost entrepreneurship and startup activity in Arlington, AED and Citrine Angels are hosting two free, educational events designed to tackle challenges facing entrepreneurs today.
The first of the two events will take place TODAY, Wednesday, September 25, and will feature a panel discussion amongst an experienced panel of VCs, entrepreneurs, and fractional/outsourced executives. These experts will discuss what it takes to build the optimal team to make your idea a reality.
We invite you to join us TODAY for Building Your Dream Team in Ballston at 5:30 p.m. Registration is now closed, but walk-ins will be welcomed!
In two weeks, we will also be holding an “ask me anything” event on the topic of turning your idea into a business. Come with questions and a group of experts will be available to share their insights. Experts currently work in the human resources, law, finance and accounting fields.
Learn more and register for our Ask Me Anything: Turning Your Idea into a Business event here to join us on Wednesday, October 9 at 5:30 p.m.
This regularly scheduled sponsored column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater D.C. Metro area, you can reach him directly at Eli@EliResidential.com.
Eli and his team believe that your real estate needs should be managed by advisors, not salespeople. Their mission is to guide, educate, and advocate for their clients through real advice, hands-on support, and personalized service.
Question: How much did mortgage rates drop after the fed cut rates last week?
Answer:
The Fed Cut Rates and Mortgage Rates… Went Up?
Last week, the Federal Reserve cut the fed funds rate by 0.5%, more than the 0.25% some expected. Great news for mortgage rates, right? Wrong.
Despite the large rate cut by the Fed, mortgage rates actually increased each of the next two days. Why?
To understand this, you need to understand that mortgage rates are not directly tied to the fed funds rate but are influenced by something else: the 10-year Treasury yield.
The Fed Funds Rate vs. Mortgage Rates
The fed funds rate is the interest rate banks charge each other for overnight loans. The Federal Reserve adjusts this rate to control inflation and guide economic growth. When they cut the rate, it makes borrowing cheaper in the short term, encouraging spending and investment.
However, long-term interest rates, like mortgage rates, don’t directly follow the fed funds rate. Instead, they are more closely linked to the yield on the 10-year Treasury note. The 10-year Treasury is market driven, as opposed to the fed fund rate controlled by the Federal Reserve, and its yield reflects investor expectations about future inflation, economic growth, and overall risk in the economy.
