You may have heard a lot of chatter about interest rates lately. That’s because the Federal Reserve recently cut interest rates for the first time in over a decade! This is a big decision that will be felt all across the country, and you can learn more about what it exactly means here.
Of course, we’re in the Real Estate business. And since you’re reading this, it probably means you’re most interested in how these interest rates will affect your mortgage or your ability to buy and sell homes, especially in the New Orleans, Baton Rouge and Gulf Coast Region. So, with these new rates combined with home price and wage appreciation, let’s see what the experts predict for the second half of 2019.
Odeta Kushi, Deputy Chief Economist in Forbes
“Buyers and borrowers may feel more confident knowing the Fed is lowering rates to boost the broader economy—and during a time when the labor market continues to be strong. The Fed rate cut is meant to further stimulate the longest economic expansion in U.S. history.”
Lawrence Yun, Chief Economist at NAR
“Rates of 4% and, in some cases even lower, create extremely attractive conditions for consumers. Buyers, for good reason, are anxious to purchase and lock in at these rates.”
Josh Migdal, Attorney in The Real Deal
“You will get a nice refinance pop because people who were borrowing a year ago at 4.5 [percent] and above are now likely able to obtain financing for between 3.5 and 3.75 [percent]. This should be enough of a spread to drive refinancing volume.”
Danielle Hale, Chief Economist at realtor.com
“Lower mortgage rates, higher wages and more homes for sale have helped counteract rising home prices, and ultimately, made it so that buyers are able to afford more than last year.”
“Our outlook implies 4% growth for the remaining months of the year, predicated on…more supply than last year, the decline in mortgage rates, moderating home price appreciation and improving affordability.”
Doug Duncan, Chief Economist for Fannie Mae
“Moderating home price appreciation and attractive mortgage rates continue to support affordability, particularly as home builders are now paying more attention to the entry-level portion of the housing market.”
Kaycee Miller in a Realtor Magazine article
“At the moment, some observers suggest the housing market is indeed headed for a slowdown. But no need to panic — experts say the financial and economic factors that were in play during the big crash a decade ago don’t exist today.”
So, what does that all mean for you?
The housing market will be stronger for the rest of 2019. If you’d like to know even more about our market, contact a LOCAL expert today, and let us help you create the life you love.