By Debi Hauer, Realtor, Investor
Debi Luxury Homes – August 3, 2019
Fed Reserve Bank lowers Interest rates by ¼ point –
What does this mean for home buyers and sellers?
Interest rates for home loans are not the same as the Federal Funds Rate. Home loan rates have been decreasing over the past 30-90 days in anticipation of the action by the Fed. Rates are currently historically low. Since the Fed is taking a less assertive stance, rates are likely at or near the bottom.
What does the rate drop mean for buyers?
Low rates mean more buying power. Buyers can afford to stretch the price upward because lower interest means lower payments. This might push you into the next value bracket allowing you to purchase a home that needs fewer repairs saving you money and time over the long run. Call or text to set up a Buyer consultation meeting to find out more. 781-783-2963.
What does it mean for sellers?
Your home value will stay steady while rates are low. When rates increase your home value will decrease over time and the number of buyers in the market will decrease as their buying power decreases with the higher rates. Your home's value has increased over the past few years it’s a great time to capture some of that equity before the market shifts. Free home valuation takes about 20 minutes. Call or text to request an appointment. 781-783-2963.