What US Fed rate cut could mean for area homebuyers

All new at 5, the recent news of a Fed rate cut could drive changes of the housing market. So what does it mean for home buyers and sellers here in Hampton Roads? Maybe you? Sending your size Lauren Martinez talked to a local real estate expert. By the end of 2024, interest rates will decline by 50 basis points. This marks the feds first cut in four years, leaving rates tinkering between 4.75 and 5%. While this is good news for those in the market to buy a home, one realtor says this cut is not a half of a percentage off of mortgage rates, so there is a lot of confusion with the Fed rate cut. So when the feds cut the rate, they are affecting, you know, borrowing costs like on credit cards, car loans, things like that. That's not like direct correlation with our mortgage rate. What potential buyers will most likely see, according to church, is more and more sellers listing their homes and specifically those who purchased between 2020 and 2021. When rates were at an all time low, nobody really wanted to sell their home when they got it, you know, 2 1⁄2%, 3% and then they get a loan for 7%. That's almost two three times their rate, so we will start to see homes coming back on market, which is really good for inventory. Really good for buyers because they're not going in and every single deal to multiple offer situation and obviously you have more buying power when your rate is lower so you can afford more homes. So will the interest rate cut actually make a difference in home affordability? Absolutely, any drop in mortgage rate helps your affordability considerably. I would say the Fed rate cut is very. It's indicative of trending mortgage mortgages going down of the mortgage rates going down and that if you are thinking about getting into the buyers market as you're thinking about starting your home journey. Now is a good time to do that. Church says all homebuyers must first understand their leveraging power before purchasing a home. 4 Martinez 10 on your side.