On September 18, 2024, the Federal Reserve lowered its federal funds rate by 0.5%, opening a new chapter in residential real estate. After aggressive rate hikes in 2022 and 2023 to combat inflation, this is the first rate cut in four years.
Mortgage rates have started to follow suit, with the daily average 30-year mortgage rate now just above 6%, and expected to continue falling.
What does this mean for you?
- Lower mortgage rates generally make home buying more affordable.
- Falling rates can also boost stock markets, so if you hold equities, this might be a great time to invest in real estate with a stronger financial footing.
To put it in perspective, since last fall:
- Average monthly payments on a $500,000 home have dropped by $670.
- On a $750,000 home, payments are down by $820.
- On a $1 million home, payments have decreased by $1,010.
If you’re thinking about buying or refinancing, now is the time to act. Reach out to me anytime—I’m here to help you seize the opportunity this rate cut presents!
Amie Pisano
📧 Email: [email protected]
📞 Phone: 914-715-2632
