This was shared with me by one of my premier lender partners - Rachel Stevens. Her contact info and scheduling link is below for if you want to take the next step and get the ball rolling on your next home or investment. You can also ask me for an intro too!
Rachel Stevens //
"I wanted to share some important updates following today’s Federal Reserve meeting and how it impacts our current market—and more importantly, how you can leverage this information in your conversations with clients.
The Fed cut interest rates by 50 basis points, bringing them down to a range of 4.75% to 5.00%. This is the first cut in four years, signaling that the Fed believes inflation is under control, now sitting near their 2% target (down from a peak of 9.1% in 2022). Here’s a breakdown of what this means for you and your clients:
The Pros:
Mortgage Rates May Drop: While mortgage rates typically factor in Fed rate cuts ahead of time, this cut could push rates below the key 6% mark. This is a great time to re-engage if you are a buyer who’ve been on the sidelines, waiting for a rate break (Source: Kiplinger, Mint).
Increased Buying Power: With slightly lower rates, buyers could qualify for larger loan amounts, which is helpful for those trying to compete in a tight market.
Home Equity Opportunities: The rate cut will immediately lower costs for short-term loans like home equity lines, which could help current homeowners tap into their equity for investments or upgrades.
The Cons:
Limited Direct Impact on the Housing Market: Fed Chair Powell pointed out that while rates are normalizing, the housing market is still constrained by a lack of inventory. The rate cut won’t fix that shortage (Source: Kiplinger).
Inflation is Still a Concern: Powell emphasized that while inflation is improving, it’s been a long process, and prices are still higher than what many Americans are comfortable with (Source: Mint, Kiplinger).
All in all, it’s a good moment. Let's start or revisit conversations about buying or refinancing. While the rate cut will benefit some sectors immediately, the mortgage market might not see the full effect for a little while.
However, anything that edges rates lower is a win for you!"
Let’s chat soon about how this can help buyers like you take the next step.
About Rachel Stevens
Rachel is incredibly knowledgeable and will be an invaluable resource for all things mortgage-related. With her extensive experience, she assists buyers at every level and is also my preferred lender. You’re in excellent hands with her!
To get started, please use the secure loan application link below and click the “Apply Now” button:
Feel free to reach out if you have any questions!
Here is Rachel’s contact info:
c: 585.615.2578
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