A day after Jerome Powell and the Federal Reserve announced a quarter-point rate cut, many homeowners and buyers expected mortgage rates to immediately drop. But here’s the reality: this was widely described as a “hawkish cut”—meaning the Fed cut rates, while also signaling fewer (or slower) cuts ahead.
In this week’s update, the Sell For 1% team—along with mortgage expert Rich Cercone of Equitable Mortgage—shared what’s happening right now in the Central Ohio market, why mortgage rates are still hovering in a familiar range, and how both buyers and sellers can win in a market that’s feeling more balanced heading into the holidays.
The Fed Cut Rates… So Why Aren’t Mortgage Rates Plummeting?
Even though the Fed lowered rates by 0.25%, Rich explained that Powell quickly moved to talk down future rate cuts—hinting at potentially just one cut in 2026 and one in 2027 (depending on the data). That messaging matters because mortgage rates are driven heavily by expectations about what the Fed will do next—not just what they did yesterday.
Bottom line: Columbus mortgage rates are still largely sitting in the high 5s to low 6s, and the market feels “stuck” there for now.
Why the Fed Seems “Stuck in the Middle”
The Fed has a dual mandate:
- Keep inflation under control
- Support employment and avoid major job losses
Right now, inflation still isn’t at the Fed’s ideal target (often referenced around 2%), but there’s also growing concern about the job market. That tug-of-war is a big reason the Fed’s messaging is cautious—even when they do cut.
Rich also mentioned the Fed may begin buying Treasury bonds again, which sounds like “quantitative easing,” but the market appears to view it more as stabilization than a major push to drive rates dramatically lower.
Buyer Update: More Choices, Less Panic
Jamie described the buyer side as a balanced market:
- Buyers have options
- Many deals aren’t a mad dash (outside of certain neighborhoods/price points)
- Homes are still moving—some deals are closing in under 30 days
Translation: you can buy without feeling like you need to waive every protection and sprint into a bidding war… but you still need to move decisively when the right house hits.
Seller Update: Inventory Drops, Serious Buyers Rise
Jay noted inventory is now just over 5,000 active listings, and many sellers are pulling homes off the market for the holidays. That reduced competition can help the sellers who stay active—especially because mortgage applications were reportedly having their best December in the last three years.
But the rule still applies:
- If you’re overpriced, you’ll sit.
- If you’re priced correctly (and marketed well), you can see real action—even in December.
Jay even mentioned December looking stronger than September/October in some cases, which is a reminder that real estate doesn’t always follow the “normal” script.
The Biggest Trend: Homeowners Don’t Want to Give Up 3% Rates
A huge factor shaping today’s market is the “golden handcuffs” problem: many homeowners have 2.5%–3% mortgage rates and don’t want to move (or refinance) into a higher rate.
Rich shared that a lot of people want:
- cash-out refinances
- access to equity
…but they hesitate because they don’t want to lose their low rate.
This keeps supply tighter than it otherwise would be—and helps explain why the market hasn’t fallen apart even with higher rates.
What This Means for You in Central Ohio
If you’re buying:
- you likely have more negotiating power than the last few years
- you may find better opportunities during the holidays because the buyers shopping now are usually serious
If you’re selling:
- you can still do well, but you need strategy and pricing discipline
- the “throw it on the MLS and it sells instantly” era is gone—especially if the home needs work or is priced too high
Looking to Buy or Sell Your home?
If you’re thinking about buying, selling, or just want a real-world read on your neighborhood (not national headlines), reach out to Sell For 1% Realtors. We’ll help you build a smart plan and keep more of your equity with our 1% listing commission model.
And if you have questions about getting a loan, rate options, or timing your next move, we can connect you with great local lenders—including Rich Cercone at Equitable Mortgage—so you’re not guessing.
Call us today and let’s map out your next step.
Watch the entire video here!