Last week, the Federal Reserve cut its benchmark interest rate by a quarter point, the second cut in six weeks. Decreasing the cost of money should positively impact consumer interest rates on credit cards, car loans, home equity lines of credit, mortgage loans and other consumer borrowing. Yet, there is no guarantee when it comes to housing. In fact, the outlook on inflation is what makes mortgage interest rates move, not lower borrowing costs for banks.
Mortgage rates are at historical lows. It isn’t likely they’ll get significantly lower unless we enter a recession. The good news is that there are no signs of an imminent recession. In fact, on Friday, the Labor Department announced that employers boosted payrolls by a surprisingly strong 166,000 in October, the most in five months. - Mortgage rates might not come down at exactly the right time for some buyers. Even if they do, the dream home some buyers are considering now might not be available at the same time as the interest rates go down. This could be a good time to purchase your dream home.
- Nobody can predict the future. Everyone is trying to guess what the market is going to do. Wait - Wait - Wait and it may be like that stock you wanted to buy one time. Mortgage rates are down, and home inventory is up. This could be a good time to purchase your dream home.
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