The big news today, of course, is the Fed deciding to cut both the fed funds rate and discount rate by 50 basis points to 4.75% and 5.25%, respectively. By mid-afternoon the stock market is soaring, and it will be interesting to watch what impact this may have on our local real estate market. It takes a while for the influence of these moves to actually “trickle down” to the mortgage market, but overall the direction of the trend is good.
With list prices beginning to come back down out of the stratosphere, investors looking for attractive, long-term real estate additions for their portfolios just might step back up to the plate as the cost of money also becomes more and more attractive. It’s another indicator we want to keep an eye on.