First Fed Rate Cut in Four Years

The Fed has officially cut the prime rate by 50 basis points (1/2%). We will not see an immediate .5% drop in mortgage rates because they are tied to the 10-year treasury and the expected rate drop was already priced in. However, this is great news for commercial rates and the long-term trajectory for residential mortgage rates. In the long-term, this should offer much-needed relief for buyers and making homeownership more affordable. While rates may continue to change, buyers may want to lock in these lower rates before competition picks up. Reach out if you want to talk more about the impact of the Federal Funds rate on the housing market!

https://finance.yahoo.com/news/fed-cuts-interest-rates-by-half-point-signals-two-additional-cuts-this-year-090036916.html