FED Cuts Rates By Half Percentage Point

Today, the Federal Reserve cut interest rates by 0.5%, marking a significant shift in monetary policy aimed at stimulating the U.S. economy. This move comes as inflation has cooled to around 2.5%, allowing the Fed to pivot its focus toward boosting economic growth and supporting a softening labor market.

For the housing market, this rate cut is expected to be a boon. Lower interest rates reduce borrowing costs, making mortgages more affordable for prospective homebuyers. As mortgage rates fall, more buyers will likely enter the market, boosting demand and increasing home sales. The 30-year mortgage rate, which had been hovering above 7%, could drop significantly as a result of today’s cut, making homes more accessible for buyers who had previously been priced out due to high rates.

Overall, the Fed’s decision is expected to provide much-needed support to the housing sector, encouraging both first-time buyers and those looking to refinance.