The Federal Reserve slashed interest rates by half a percent last week—and while that may not sound like a big deal, it brings them down to the lowest they’ve been in over two years, according to the Mortgage Bankers Association. Since the cut, there's been an 11% increase in home loan applications this week compared to last.

The timing of this move couldn’t work out better for home buyers: Next week, September 29 to October 5, is statistically the best time to buy a home, according to Realtor. com—so if you’re considering making an offer on a property, you have plenty of incentive to do it now (like, right now).

According to Realtor.com, in the first week of October, those looking to buy could save more than $14,000 compared to the summer's peak price.

Experts predict approximately 50,000 listed homes will reduce in price during this period. There are a few reasons for this: lower interest rates, higher inventory, less competition, and more motivated sellers. These factors combined could result in a 22% price drop for all homes listed.

When interest rates were elevated, many sellers responded by waiting to list their properties (even during the typically-busy summer season). Now, there are up to 37% more active listings compared to a year ago.

This excess inventory, which includes plenty of new builds, along with a relatively smaller pool of buyers give them the advantage. Demand is currently 29.5% lower than peak selling times and 14% below average.

Plus, home prices are more consistently down: They've stayed low for the second year in a row, with median prices in June and July roughly the same as they were the year before. And because homes generally stay on the market for a longer time, sellers are eager and open to negotiating, and buyers are more relaxed.

If you’re considering buying a home, the first week in October is peak shopping time. This weekend is the time to head out to some open houses and get started on your home search—you could even close a deal by the end of the week.

Source: The Best Week to Buy a Home in 2024 Is Coming Up, According to Real Estate Pros Better Homes & Gardens (September 26, 2024) Sharon Greenthal