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It looks like we may soon see our first rate cut from the Federal Reserve since 2020. In an effort to combat inflation, the Fed has been steadily raising the federal funds rate, which caused mortgage interest rates to rise as well. We’ve seen mortgage rates climb from the high 2% range all the way up to 8%.
In August, economic indicators showed signs that the Federal Reserve had been looking for, and they hinted at a potential rate cut in September. In anticipation of this, mortgage interest rates have been steadily declining and are now at their lowest point since February 2023. Currently, mortgage rates are in the low 6% range.
What does this mean for home buyers and sellers?
Buyers will likely benefit from increased purchasing power. As a result, sellers may see more interest in their homes. Many buyers have been waiting for rates to come down, so as they continue to drop, we could see a surge in market activity.
