Last month the Federal Reserve lowered interest rates for the first time in four years, sparking excitement in the real estate community. Although mortgage rates are not directly controlled by the Fed, there is a general correlation, which means mortgage rates are expected to continue falling along with anticipated cuts by the Fed through 2025. This is big news for people who have been waiting for rates to drop in order to purchase a home or refinance their existing mortgage.
For those looking to purchase a new home, lower rates mean more purchasing power. Buyers who have been sidelined in recent years may be ready to start looking again – this is evidenced by a recent increase in mortgage applications. In addition to buyers (re)entering the market, there is hope that lower rates will encourage sellers as well; those holding on to low rates may be more encouraged to sale as rates tick down, leading to increased inventory.
For homeowners who recently purchased a home, or for those who failed to refinance when rates hit an all-time low during the pandemic, declining rates are also presenting an opportunity to save money. Lower rates can help homeowners lock into a lower monthly payment, shorten their mortgage term, or tap into existing equity.
Revolution Law Group is located in Greensboro, NC, and serves individuals and small businesses throughout the Triad and surrounding areas. To contact us please visit Revolution.law or call 336-333-7907.
The information included here is for informational purposes only, is not exhaustive of all considerations when creating documents, is not intended to be legal advice, and should not be relied upon for that purpose. We strongly recommend you consult with an attorney and do not attempt to create your own documents.