The Fed Cuts Interest Rates

The Federal Reserve’s first interest rate cut in four years happened last Wednesday, and mortgage interest rates ended the week unchanged. That is because mortgage rates had already slid significantly in the previous two months in anticipation of the September 18 rate cut.

According to the Mortgage Bankers Association, the 30-year fixed rate is the lowest it has been since February 2023. This provides welcome relief to both home buyers and homeowners.

Time to Refinance

For homeowners who purchased in the last two years, it could be a good time to refinance. Last week, I started working with five former clients to refinance their mortgages and lower their payments. One person saved $1000/month (it was a large mortgage) and all are saving at least $300. Please contact me if you would like me to run numbers.

I am also re-doing numbers for my pre-approvals. With these lower rates, clients are able to afford almost $100,000 more of a mortgage for the same payment as we looked at early this summer with the higher rates. That is helping them widen the range of home prices they can consider. Troy and I are happily very busy helping our clients take advantage of the lower mortgage rates.