What Happens When the Fed Finally Cuts Rates?
Inflation has slowed and the labor market has softened enough to satisfy the Federal Reserve. That means the central bank is about to cut interest rates.
Fed Chair Jerome Powell said, “The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”
This morning the Fed made a decision to lower interest rates by half a point for the first time in four years! This presents a significant opportunity for home buyers to get back in the market, stimulating demand in the housing market. Over the past few months, the market has felt sluggish for sellers with longer days on market, but hopefully this recent news might increase interest, while buyers can take advantage of more favorable loan terms. This rate reduction also helps counter some economic uncertainty and gives a glimpse of hope as we move towards market with better affordability. Stay tuned to see the effects of this recent change, as we analyze market statistics and my personal experience working with clients day to day. Have a great week and enjoy the beautiful weather while it lasts! - Greg
What's new with Mortgage Rates?
 | The Latest Builder Trend: Smaller, Less Expensive Homes Now, with affordability as tight as it is, builders are turning their focus to smaller single-family homes. |
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