Real Estate News 09/20/2024

Today’s News Synopsis:

After more than a year of keeping the federal funds rate steady, the Fed on Wednesday made a much-anticipated cut of 50 basis points — or half a percentage point.

In The News:

CNBC – “What the Fed rate cut means for mortgages, loans and credit cards“ (09-18-2023)

“The adjustment, announced by the Federal Open Market Committee (FOMC) at the end of its two-day meeting on Wednesday, lowers the target range to between 4.75% and 5.0%.”

Redfin – “U.S. Home Prices Rose 0.5% in August, the Biggest Increase in 4 Months“ (09-17-24)

“U.S. home prices grew 0.5% in August on a seasonally adjusted basis, the largest month-over-month increase since April.  On a year-over-year basis, home prices rose 6.7%, the lowest annual increase since January. ”

Fortune –  “Jerome Powell says the Fed can cut rates but it can’t fix the housing crisis” (09-20-2024)

“The Federal Reserve delivered its first interest rate cut in more than four years yesterday. It was a declaration of victory over once hot, hot, hot inflation. And mortgage rates responded by fluctuating in kind of a weird way. The average 30-year fixed weekly rate dropped from 6.2% to 6.09% and the daily rate rose from 6.15% to 6.17%.”

Realtor.com –  “Fed Slashes Rates Aggressively With Larger Half-Point Cut: Prepare for Lower Mortgages” (09-18-24)

“The Federal Reserve has issued its first interest rate cut in four years, kicking off an easing cycle that is already making new mortgages more affordable.”

Zillow –  “Fed Cuts In Line With Expectations, Yields Increase On The News” (09-18-24)

“Today the Federal Open Market Committee (FOMC) decided to lower its key policy rate by 50 basis points — the first interest rate cut since the outset of the Covid pandemic — in an attempt to prevent its policy stance from becoming too restrictive of economic activity. ”