This ARTICLE On The Federal Reserve Board Interest Cuts And How It Benefits Home Buyers Was PUBLISHED On September 18th, 2019
Federal Reserve Board Interest Cuts announcement should be expected this week.
- Federal Reserve Board Chairman Jerome Powell is expected to announce a 0.25% interest rate cut sometime this week
- Many home buyers, sellers, real estate and mortgage professionals are wondering what this means for them and how it will benefit them
- Most industry experts do not expect any sudden changes in mortgage rates because the markets already absorbed this news weeks ago
- There is much speculation about the Federal Reserve Board Interest Cuts
- Will the Feds continue to cut interest rates?
- Will mortgage rates slide lower than what it is today?
In this article, we will cover and discuss the Federal Reserve Board Interest Cuts this week and what that means to consumers, especially mortgage rates.
What Impact Will The Federal Reserve Board Interest Cuts Have On The Economy
In general, the cost of borrowing money is less whenever the Federal Reserve Board lowers interest rates. It benefits consumers in general when taking out an auto loan, applying for new credit, or taking out a new mortgage.
Alex Carlucci is an associate contributing editor and senior vice president at Gustan Cho Associates and a financial expert.
How Interest Cuts Affect Mortgage Rates
Current mortgage rates are at a three year low (3.75%).
- However, housing prices have been the highest since the 2008 Great Recession and Real Estate Collapse
- Both HUD and the Federal Housing Finance Agency (FHFA) has increased FHA and Conforming Loan Limits due to rising home prices
- FHA Loan Limit is now capped at $314,827
- Conforming Loan Limit is now capped at $484,350
- The Department of Veterans Affairs recently announced they have removed the maximum VA Loan Limit Cap
- Further interest rate cuts will lead to further cuts in mortgage rates
- This will benefit homeowners who closed their home loan back in 2018
Any homeowners with mortgage rates north of 5.0% will benefit from the low rates where they can get a net tangible benefit by refinancing their current home loans.
For more information about the contents of this article and/or other mortgage-related topics, please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com.
