Wednesday’s Rate Cut: The Fed’s First Since 2020—But It Won’t Be the Last
In a significant move, the Federal Reserve made its first interest rate cut since 2020 this past Wednesday September 18th 2024. This decision marks the beginning of a shift toward lower borrowing costs, and if you're looking to buy or sell a home, these changes could impact your decisions sooner than you think.
What’s Happening?
The Fed’s rate-setting committee members project that borrowing costs will decrease by another half a percentage point before the end of the year, followed by a full percentage point cut in 2025. This trajectory is more aggressive than what the Fed predicted just three months ago, signaling a faster shift toward easing economic conditions.
Why It Matters for Buyers
Lower interest rates mean more affordable mortgage rates, which can translate into lower monthly payments for potential homebuyers. With the Fed projecting more cuts, now could be the perfect time to start looking at your options. As rates drop, demand may rise, potentially increasing competition for homes on the market.
Why It Matters for Sellers
If you’re thinking about selling your home, these rate cuts could bring more buyers into the market, but it’s important to act strategically. As borrowing costs go down, buyers gain more purchasing power. This could lead to higher demand and more competitive offers, making it an opportune moment to list your home.
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