Did You Know…
As you may have seen on Facebook earlier today:
On Tuesday, the Federal Reserve announced its first emergency rate cut since the financial crisis due to mounting concerns over the economic impact from a potential coronavirus outbreak in the U.S.
The Fed’s rate cut was unscheduled. It also marks the largest one-time cut—half a percentage point—since 2008.
“The coronavirus has quickly upended globe economic expansion and introduced the significant uncertainty of a possible recession,” says Lawrence Yun, chief economist at the National Association of REALTORS®. “Today’s interest rate cut is therefore an appropriate response to changing events. The real estate sector will hold up very well because of the rate cut. Hesitant home buyers will be enticed to take advantage of low interest rates. Commercial property prices will rise due to higher returns that can be had from the bond market after adjusting for risks.”
Mortgage rates have already fallen since the beginning of this year and are now hovering at the lowest averages since 2016. Freddie Mac reported last Thursday that the 30-year fixed-rate mortgage averaged 3.45%, down from 4.35% a year earlier. For more information on mortgages and applying for a loan, visit https://hownw.com/home-buying-process/applying-for-a-loan/