KEARNEY, Neb. — Before the pandemic began the Fed sliced rates earlier Wednesday by half a point. The cut was bigger than some analysts had anticipated, as cuts of. 25% are more typical.
Mortgage Rates Reactions from Local Experts
“That will end up turning into more activity in all kinds of markets, but especially the real estate market,” said Kearney associate broker Matthew Meister.
What has happened to inflation is easing up in many sectors but it still persists hugely on the housing market. Mortgage rates reached the highest level since 2002, in 2022. According to Meister the Fed cut will lead to further easing of rates, although not dramatic, because in his opinion there is no way that abruptly mortgage rates will turn up.
Current Inflation Trends
“When those mortgage rates get a little better, people can afford to buy the houses they want that they can’t afford if they’re paying 7% interest, but if it is 5.
5% they can pay for the house. ”
Consumer Sentiment and Spending
The fed cut may not force the mortgage rates to reduce but may get the shoppers to open their wallet a little wider.
Market Outlook
That is not tied to mortgage interest rates which many people believe to be the case with it, instead it relates to consumers’ view of the economy as it strengthens or improves. ”
Meister thinks that the move from the Fed could lead the local homeowners to sell their homes, and revive faith in others thinking of whether to invest in existing homes or not.
They will have a few more in inventories, but at the more time more buyers, and that is a balanced thing.
As per Meister the market for Kearney has generally been good and he foresees this run continuing on.
Looking Ahead
‘We have observed some level of activity, and we are likely to observe an enhanced level of activity in the coming few months until when players decide to wait and see’