FINALLY! It has been 4 years since the Fed last cut the rates. It seems surreal that it has been that long. However, it is certainly no shock that the interest rates have increased steadily over those 4 years. We have all felt the financial squeeze of those higher rates. With the low inventory of available homes for sale keeping the prices high, the higher interest rates had created an additional barrier to buyers looking for an affordable home.
Whether it is due to indications of inflation softening, or due to the upcoming political elections, homebuyers should rejoice! With the Feds making rate cuts, the mortgage rates will make an adjustment lower. As of today the interest rates on loans and mortgages are getting close to 6%. We are hoping to see a further reduction of that 6%. It is not likely that we will ever see those low rates of 3% in the near future, but any interest rate lower than 6% will open up a whole new pool of homes that homebuyers can consider when shopping for their first, or next home!
Happy Shopping!