On Wednesday September 18, 2024, the Federal Reserve lowered its federal funds rate by 0.5%, marking the beginning of a new chapter in residential real estate.
To combat inflation, the Fed raised rates aggressively in 2022 and 2023. It had been four years since we’ve seen a rate cut. With the Fed rate cut already priced in, the daily average 30-year mortgage rate has been steadily decreasing already and is currently running a little above 6%. It is expected to continue creeping down.
A lowering rate environment is generally good for stocks. If you have equities, it’s a good time to make a new investment in a property with a stronger stock portfolio.
How can you take advantage of falling mortgage rates? Here are some points of reference:
The average payment on a $500k home has dropped by $670/month since last fall.
The average payment on a $750k home has dropped by $820/month since last fall.
The average payment on a $1m home has dropped by $1,010/month since last fall.
Reach out today so I can help you seize your opportunity.
