Now may be the right time to buy or refinance your home loan.
If you’ve been keeping up with the latest market news, you might have heard that the Federal Reserve recently made its first rate cut in over four years, lowering the benchmark federal funds rate by 0.5%. So, what does this mean for homeowners or buyers like you? Here’s everything you need to know:
1. Lower borrowing costs. The primary goal of the Federal Reserve’s rate cut is to reduce borrowing costs and stimulate economic growth. By slashing the rates, people get to benefit from lower interest rates for loans, including credit cards, car loans, and home equity loans.
2. How mortgage rates are affected. Mortgage rates tend to be closely tied to the 10-year Treasury yield, and recently, both the 10-year yield and mortgage rates have been trending downward. Currently, the average 30-year fixed mortgage rate is hovering around 5.5%, which is down from over 7% earlier this year.
“The Federal Reserve’s rate cut has lowered borrowing costs across the board.”
3. Mortgage predictions. Forecasts suggest that mortgage rates could remain stable or potentially drop further. This is great news for homebuyers and those looking to refinance to lock in lower rates. So, if you’ve been on the fence about purchasing a home or refinancing, now might be the right time to make a move.
I hope you find these insights helpful. My role is to keep you informed so you can make confident decisions in real estate, whether you’re considering buying, refinancing, or simply exploring your options.
If you have any questions or want professional guidance in your real estate needs, call us at 914-548-6179 to schedule a consultation. Remember: You don’t buy or sell real estate every day, so when you do, make sure you partner with the right professional. I look forward to hearing from you!
