Federal Reserve to cut interest rates; mortgage experts predict boost for housing market
Ahead of the Federal Reserve’s meeting on Wednesday to discuss cutting interest rates, New Hampshire mortgage experts said rate cuts will hopefully provide a boost to supply and demand issues related to the housing market.”With rates coming down, hopefully, more sellers are saying, ‘OK, I can now list because I can get into something a little cheaper myself,'” said Kurt Strandson, president of Pinnacle Mortgage Corp. in Manchester. “We’ve been waiting for a long time — 24, 26 months to finally get some rate reprieve.”Strandson said since the COVID-19 pandemic, the housing market nationwide has been consistently volatile.”The rate market’s been like a cardiogram up and down in large movements,” Strandson said. Around this time last year, Strandson said fixed mortgage rates were hovering around 8%. Fortunately, he said potential and current homeowners are now seeing major progress in the housing market.”Now, you have rates hitting into the high fives. That’s a big difference for homeowners and for sellers,” Strandson said. “On Friday and Monday of this last week, rates hit the lowest point in two years.”He also said this is especially good news for first-time homebuyers who have been priced out of the market.”You have to come up with a down payment for the first time. So, for first-time homebuyers, this is a great opportunity,” Strandson said.As Americans wait in anticipation for the outcome of Wednesday’s meeting, Strandson said investors are also looking into what comes after if new interest rates are announced.” are also hoping to see a trend where the rates start trending down in increments into 2025. Investors are guessing that maybe we’ll see interest rates a good percent lower for fixed-rate mortgages,” Strandson said.
Ahead of the Federal Reserve’s meeting on Wednesday to discuss cutting interest rates, New Hampshire mortgage experts said rate cuts will hopefully provide a boost to supply and demand issues related to the housing market.
“With rates coming down, hopefully, more sellers are saying, ‘OK, I can now list because I can get into something a little cheaper myself,'” said Kurt Strandson, president of Pinnacle Mortgage Corp. in Manchester. “We’ve been waiting for a long time — 24, 26 months to finally get some rate reprieve.”
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Strandson said since the COVID-19 pandemic, the housing market nationwide has been consistently volatile.
“The rate market’s been like a cardiogram up and down in large movements,” Strandson said.
Around this time last year, Strandson said fixed mortgage rates were hovering around 8%. Fortunately, he said potential and current homeowners are now seeing major progress in the housing market.
“Now, you have rates hitting into the high fives. That’s a big difference for homeowners and for sellers,” Strandson said. “On Friday and Monday of this last week, rates hit the lowest point in two years.”
He also said this is especially good news for first-time homebuyers who have been priced out of the market.
“You have to come up with a down payment for the first time. So, for first-time homebuyers, this is a great opportunity,” Strandson said.
As Americans wait in anticipation for the outcome of Wednesday’s meeting, Strandson said investors are also looking into what comes after if new interest rates are announced.
“[Investors] are also hoping to see a trend where the rates start trending down in increments into 2025. Investors are guessing that maybe we’ll see interest rates a good percent lower for fixed-rate mortgages,” Strandson said.