DELMARVA – The Federal Reserve announced a 0.5% rate cut, the first reduction since 2020. Mortgage rates could drop as a result for prospective sellers, buyers, and refinancers.
Marco Smith, from the Maryland and Delaware group of eXp Realty, said this cut will cause a rippling effect in the housing market. “We will see the interest rates follow that pattern because there have been a lot of buyers on the sideline and any movement of rates, in a positive direction is going to bring people off the sideline.”
It also can impact real estate investors. Lower interest rates can improve cash flow and make financing more affordable for real estate investors. However, with more buyers on the market, that could impact inventory, resulting in a shortage of homes…