This Federal Reserve cut interest rates this week, the third such cut this year. The US economy is slowing due to trade disputes so they cut the rate to help spur additional growth. The rate affects the cost of mortgages, credit cards, and other borrowing instruments. This appears to be the last such cut in the foreseeable future as Federal Reserve Chairman Jerome Powell said the current level is “likely to remain appropriate”.
This cut in rates is good for homebuyers as it means that the rates for mortgages should stay low. This means that many people who couldn’t afford a mortgage may be surprised at how much home is in their budget. If you are interested in purchasing a home, getting pre-qualified for a home mortgage is one of the best first steps you can take. This will help you to realize just how big of a mortgage the bank is willing to extend to you. This should be one of the most important factors to steer your home search.
Once you are pre-qualified to purchase a home, give us a call at 803-831-8588 and we can help you to narrow your search to find the perfect home for you. There are so many listings that it can be overwhelming, so call us and we will set up a meeting to define your search terms. Once we have identified potential candidate homes, we will schedule a private tour of homes so you can see if the reality of a home matches the photos you can view online.
The other category of people helped by lower rates is current homeowners. If you are stuck in a mortgage with a high interest rate, refinancing is a great option. There are many different types of refinance products available from reducing the term of years for repayment, to providing cash to the owner from equity to use to remodel your home, to just lowering your rate to reduce your monthly payment.
If you’re ready to purchase a home, be sure to create a custom search on our website here for all current listings. We are ready to help you take advantage of these great low rates so you can be in the home of your dreams.