June 2025 Fed Update: What Buyers, Sellers & Brokers Need to Know

The Federal Reserve kept interest rates steady on June 18, holding the federal funds rate at 4.25%–4.50%. While this decision was expected, it comes with several new signals that buyers, sellers, and brokers in the real estate market should pay attention to.

Here’s what we know — and what to watch.

📊 The Fed’s Latest Decision at a Glance:

• Rates unchanged — fourth pause in a row

• Still forecasting two cuts by end of 2025, but highly dependent on data

• Inflation revised up to ~3%, driven by tariffs

• GDP growth and employment projections ticked down

Fed Chair Jerome Powell emphasized a cautious approach:

“We’re well-positioned to wait and see how things unfold.”

🔑 What It Means for You

🏡 Buyers

• Mortgage rates remain high (~6.9% for a 30-year fixed loan)

• More inventory is entering the market, giving buyers more choice

• The Fed may cut later this year, but that’s not guaranteed — and waiting too long could mean missing out on the right home

🔍 Takeaway: If you’re serious about buying in 2025, consider getting pre-approved now and working with a savvy broker who can help you time your move and potentially refinance down the road.

🏠 Sellers

• Higher mortgage rates = more selective buyers

• Homes that are priced right and prepped well are still moving — especially in desirable neighborhoods

• Listing now, before potential rate cuts and broader economic cooling, could work to your advantage

📌 Takeaway: If you're planning to buy after you sell, acting now may give you an edge before competition and rates shift again later in the year.

💼 Brokers & Agents

• This is a market where advice matters more than ever

• Clients are hearing mixed messages: recession, tariffs, inflation — help them focus on what’s relevant to their goals

• Stay sharp on Fed updates, macroeconomic shifts, and local data — this builds trust

🤝 Takeaway: Provide clarity, not pressure. Buyers and sellers will move when they feel confident — and that starts with your expertise.

🧭 Looking Ahead

The Fed will likely wait until September before making any move. Key factors to watch:

• Inflation trends (especially from tariffs)

• Labor market strength

• Consumer spending and housing activity

As always, Michele’s team is here to help clients make informed real estate decisions in a changing market.

📩 Final Note for Clients

Whether you're thinking of buying, selling, or just trying to understand how all this affects you, we're here to help. Let’s talk about your specific goals — and how to stay ahead of market changes.