Will The Fed Rate Drop Bring Relief to the Housing Market?!
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- Опубліковано 5 жов 2024
- Recently, the Federal Reserve announced that they would be lowering the federal interest rate, which means that it will finally be affordable to buy a home now, right? Well, not exactly. While a lower interest rate is helpful for a homebuyer, the surge in other people also now looking for a home because it is more affordable to do so actually drives up home prices and competition, making it even more difficult to buy a home.
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It is going to require more than a 0.5 rate cut to entice a segment of buyers. This measly cut, by the Fed Reserve, is just for appearances. Buyers like myself actually need PRICE CUTs. Personally, I do not need lower interest rates. I would be a cash buyer. I need the price of homes to drop. I do agree with your assessment that lower interest rates spawn more interest in buying, which leads to more competition, therefore higher prices.
I just signed for a house, not closed yet. Its in DC area, i cant believe i got a house for 500k. It sounds outrageous. But i am banking on exactly what she said. Rates falling, refinancing while more buyers come in to push prices even higher. Who knows though, its in a great area and i wanted a yard for my daughter, so its about more than just the investment anyway.
I'm still surprised they went with 50bps based on the "strength" of the economy Powell said at his conference. I think he's seen too many downward revisions to the employment data and now concerned about an uptick in unemployment.
Not sure this solves the housing market as it's not really a rate issue but a price issue impacting affordability.
It’s not the rates, it’s the prices. Not paying 100% over 2020 prices
No, because credit is available to speculators in for higher quantities than it is to consumers. There's a reason we started seeing housing prices die down when rates went up.
Basically, You can't win buying a house. Prices are up rates are down. Rates are up prices are down. Just like when selling your home, prices are up good time to sell? Well then you have to buy another home at a higher price. Doesn't really matter, either way