This week’s Federal Reserve meeting came and went exactly as expected. The Fed held rates unchanged, and markets barely reacted. There was little volatility heading into the meeting and almost none afterward. As a result, mortgage rates remain near three year lows.
While the Fed decision itself was uneventful, the more meaningful story for the Northern Virginia real estate market is what’s happening beneath the surface, particularly around homeowner behavior and market movement.
Here is a breakdown of what we are seeing and what it means for Northern Virginia buyers and homeowners.
▶️ Watch the Video
For a quick overview, check out this week’s Mortgage Minute video:
What We Are Seeing in the Market
The Fed Held Rates Steady With No Market Disruption
The Federal Reserve left rates unchanged this week, which was widely telegraphed in advance. Markets were calm before the announcement and remained steady afterward. There was no meaningful spike in volatility tied to the meeting, reinforcing the current theme of rate stability.
Mortgage rates continue to hover near their lowest levels in nearly three years, providing a more predictable environment for buyers and homeowners planning next steps.
Mortgage Rates Remain Near Three Year Lows
Despite ongoing economic headlines, mortgage rates have stayed relatively stable and near recent lows. This has helped improve affordability and restore some confidence for buyers who had been sitting on the sidelines waiting for clarity.
In Northern Virginia, even modest improvements in rates tend to translate quickly into increased buyer activity.
The Lock In Effect Is Starting to Loosen
One of the most important shifts happening right now is the gradual easing of the lock in effect. Since the pandemic, a large portion of homeowners held mortgage rates under 3 to 4 percent, which made selling and moving difficult once rates rose.
That dynamic is changing. Today, the majority of outstanding mortgages in the United States carry rates above 6 percent. As that balance shifts, homeowners are becoming more willing to make moves, which supports healthier market activity and helps unlock inventory.
Signs of a More Normal Spring Market
With mortgage rates easing lower, conditions are lining up for what could be the first truly normal spring housing market in years. I think we are going to see more movement, more listings, and more realistic expectations from both buyers and sellers.
In Northern Virginia, markets tend to respond quickly once momentum builds, and this shift could be the early signal of increased activity heading into the spring season.
What This Means for Northern Virginia Buyers and Homeowners
As the lock in effect loosens and rates stabilize, opportunity is returning to the market, but preparation remains critical.
For buyers, being fully pre-approved, understanding your numbers, and having a clear strategy allows you to move confidently when the right home becomes available.
For homeowners, this environment reinforces the importance of having a plan in place, whether that includes a future move, a refinance opportunity, or simply understanding how today’s rates impact long-term goals.
Let’s Talk Next Steps
Whether you are planning to buy, considering selling, monitoring refinance opportunities, or just want to better understand how current mortgage rates affect your options in Northern Virginia, I am always happy to walk through scenarios and help you build a strategy.
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Written by John Pyne, SVP Regional Manager and Mortgage Advisor based in Northern Virginia. Specializing in first time homebuyers and strategic mortgage solutions across the DC Metro area.