The first Fed interest rate cut in years is on the horizon. Here's what homeowners, buyers need to know.
The Federal Reserve is poised to make the first interest rate cut in years this fall, which can influence mortgage rates to go down.
The Federal Reserve is poised to make the first interest rate cut in years this fall, which can influence mortgage rates to go down.
Even small cuts in rates could make a meaningful difference in what a homebuyer will pay. To that point, people in the market to buy a home have been eagerly waiting for the central bank to cut rates.
The Fed is meeting this week, but experts say it seems more likely the first rate cut will come in September. That would be the first rate cut since 2020 at the onset of the Covid-19 pandemic.
While there is a less than 6% chance of a rate cut in the upcoming Federal Open Market Committee meeting, according to the CME’s FedWatch measure of futures market pricing, there is a much greater likelihood of quarter-point reductions in September, November and December.
That along with further cuts in 2025 would bring the the Fed’s benchmark fed funds rate to below 4% by the end of next year, according to some experts.
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