Reductions to the Feds Rate can aid borrowers, but can also inhibit them as with interest reduced on savings account, can delay that process of saving for a downpayment. It also negatively affects those on fixed incomes.
Products tied to the prime rate that are most affected by the Fed Interest Rate Cuts include Credit Cards, HELOC (Home Equity Lines of Credit), Adjustable Rate Mortgages, Student Loans & Bank Savings Rates.
Why are fixed rate mortgages not as affected? Fixed rates follow more long term economic trends such as predictions of inflation. These rates, although lower than a year ago, have begun to slightly increase based on those economic trends.
Still, year over year, rates are lower now than they were this time in 2018. Want to take advantage of low rates? If you have been considering buying, it’s a great time to start the process! Contact The Cole Slate Team at EXIT Real Estate Gallery for the next steps!