The Federal Reserve cut interest rate by a quarter of a point today for the first time since 2008 as concerns over the economy and trade wars increase.
Now, interest rates are historically low, leaving the federal government small room to cut rates and stimulate the economy.
However, the cut benefits consumers in the short term by making mortgages more attractive, lowering interest on credit cards and other loans such cars and student loans.
As for mortgage rates, they are already low and the cut helps borrowers to lock in a better rate for the life of loan. It also makes a good time to refinance more expensive loans. The average 30-year fixed rate is now about 3.93%.
Also, consumers with adjustable-rate mortgage will see their interest rate go down.
All in all, it is a good time for the sizzling housing market. Call 313-819-0101 if you are in the market for a home.