DAYTON, Ohio (WDTN) — The U.S. Federal Reserve is on the cusp of joining several other world powers in cutting interest rates for the first time since March 2020.
Experts said the housing market is sure to be one of the key areas which will likely be affected by a rate cut. But will a change like this change ultimately help consumers?
Those who have been monitoring the situation are just waiting for the Fed’s next move.
“We’ve been in a pretty big hole for quite a long time and it’s not going to be something that cures overnight,” said Matthew Edwards, branch manager with New American Funding. “It’s going to be something that’s going to take a year or two for people to really reap the benefits of rates dropping.”
Housing has been a primary concern for the past four years, with factors such as skyrocketing down payments, fluctuating rates and a lack of affordable homes persisting.
“It’s been very difficult for people to buy, specifically, your first home,” said Jared Pincin, Cedarville University Associate Professor of Economics. “The typical down payment for a home is at the highest it’s ever been.”
After the Fed’s most recent hearing, Federal Reserve Chair Jerome Powell told reporters that it planned to leave interest rates unchanged, but some are wondering whether that will continue to be the case as other countries around the world have begun to cut their own rates.
Experts said that in the meantime, those shopping for a home – especially first-time homebuyers – should continue to remain vigilant and monitor the situation to see when they can reap the benefits.
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