Hello Folks,
We have some exciting news for you today The Federal Reserve has made the decision to cut the Fed Rate by 0.5% in an effort to combat inflation. This is the first, and largest cut since March of 2020, during COVID-19. This is noted as the first effort in an ongoing plan to fight inflation by the Federal Reserve. For how this affects the Real Estate Market, take a look below!
Breaking News - Fed RATE cut by .5%
Here's how this might affect you, especially in this stalled Real Estate Market:
If you’re a Seller:
This is a huge step forward that will encourage buyers to return to the Market.
With a lowered Interest Rate, potential Buyers will be able to qualify for more, therefore increasing the pool of potential buyers for your property!
If you’re a Buyer:
You can qualify for a larger Loan Amount, here's an example below:
$500K @ 7.50% PI = $3,496.07
$500K @ 6.25% PI = $3,078.59
That's approximately $417.41 monthly savings, with nothing done but adjusting the Interest Rate.
However, please keep in mind that the Lenders in anticipation of the Fed Rate Cut, have been reducing the Mortgage Rates for some time. The rates are hovering around 6 to 6.25%.
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