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How will Fed rate cut impact SWFL real estate?

Author: Therese McDevitt, Gulfshore Business
Published: Updated:

The recent National Association of Realtors settlement isn’t the only thing that could have a big impact on the real estate market in Southwest Florida and around the country.

Will the bigger-than-expected 0.5% rate cut by the Federal Reserve last week help push already falling mortgage rates even lower? On Sept. 19, Federal Home Loan Mortgage Corp. officials said the standard fixed-rate mortgage averaged 6.09%, the lowest since February 2023, falling from 6.2% the previous week and well below last fall’s highest rate in two decades of 7.79%.

The secondary market lender’s website states the declining mortgage rates are “reviving purchase and refinance demand for many customers. While mortgage rates do not directly follow moves by the Federal Reserve, this first cut in over four years will have an impact on the housing market. Declining mortgage rates over the last several weeks indicate this cut was mostly baked in, but rates will likely fall further, sparking more housing activity.”

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