If you own a home or hope to buy one soon, what does the Fed’s interest rate cut mean for you?

By CNN Newsource

Published September 20, 2024 2:00 am

By Samantha Delouya, CNN

(CNN) — On Wednesday, the Federal Reserve cut interest rates for the first time since the early days of the COVID-19 pandemic, slashing its benchmark rate by half a percentage point and signaling more rate cuts by the end of the year.

The housing market is one of the most interest-rate-sensitive sectors of the US economy, and over the past few years, elevated mortgage rates, along with sky-high housing prices, have contributed to a lack of home affordability.

The supply of homes for sale hasn’t kept up with demand as homeowners who locked in ultra-low pandemic-era mortgage rates were less willing to sell their homes in a higher mortgage rate environment. Some experts believe falling rates could entice more homeowners to put their homes up for sale.

In the past few months, rates have steadily fallen in anticipation of interest rate cuts. The standard 30-year fixed-rate mortgage averaged 6.09% in the week ended September 19, according to Freddie Mac, down significantly from 7.79% last fall.

Does the Fed’s recent interest rate cut and the potential for more rate cuts in the future change your outlook as a homeowner or a potential homebuyer? If so, we would love to hear from you. Please share your thoughts with us in the form below.