September 17th-18th will be the 6th Federal Reserve meeting to discuss the financial capability of our country and the price of money. These decisions directly influence our interest rates. It has been a well known fact that over the last two years the Federal Reserve has been getting pressure from the President to cut interest rates. With the economy booming right now and trade deals uncertain there are some hazy predictions coming down the pipeline.
Rates were cut in July
In an effort to stimulate the economy and to succumb to Presidential pressure, the Reserve cut interest rates for the first time in 10 years. Not only that but they are anticipating additional cuts in the upcoming 9/17-/9/18 meetings, but there are rumors of the “R” word.
What happens with the Federal Reserve cuts rates?
The first thing that happens when the reserve announces they officially cut rates, the stock market soars as people re-arrange money. Also consumers are more likely to make larger purchase by borrowing money (I.E buying homes and investing in business).
What does a cut in rates mean to you?
As a consumer it means you get to experience a lower cost of money (I.E mortgage rates, car loans, etc) This is because the Fed is giving you incentive to spend money to boost the economy. This means it’s a great time to get pre-approved for a home loan, buy a car or invest in the market.
How to keep track?
If you want to keep an eye on what rates are doing you will want to pay attention to the 8 meetings per year the Federal Reserve meets. You can view their calendar here. If you’re thinking of making a large purchase like a home, I have provided a way to monitor rates by signing up here.
The Take Away
The bottom line is simple, if you are considering making life change like buying a home, its a good time to consider talking to a qualified loan officer. They can assist with products and options available to you. Now if you’re going to work with a good loan officer you might want to work with one that has great reviews as well. I would be happy to assist with any questions you have. Just feel free to contact me.
What Can I Do Now?
You can Sign up for mortgage rates here
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if all that checks out you can apply here