The Federal Reserve’s interest rate cut, happening for the first time after 11 years, was expected to make a difference across the board in the country. A number of industries were affected by this change. The new interest rate was expected to make deals more profitable by lowering the costs of borrowing. Of course, the real estate market in the United States is no exception when it comes to the effects of this change.
Mortgage Rates at the Lowest
The mortgage rates right now are the lowest that they have been for a very long time. In fact, they are almost as low as the historic low rates. The recent development is encouraging a lot of people to jump on the opportunity to buy a home and reach for properties that were otherwise out of their price range before.
The fact that people have the ability to save so much now will definitely liven up the traditionally slow housing season. Builders are, in fact, ramping up their efforts as the demand in the housing market increases. July saw the pending home sales slump but came back up in August, according to a report by the National Association of Realtors.
Contract activity rose 1.6% month-over-month according to the report, and it showed an even more impressive climb since last year at 2.5%. The announcement of the benchmark 30-year fixed mortgage hit 3.64% this week, down from 4.74% last year.
Things are Looking Brighter than ever
The latest data of the market activity shows that home buyers are definitely taking advantage of the lower mortgage rates. The fact that it took potential buyers a while to spring into action is understandable, since low mortgage rates do not really offset home down payment – the largest hindrance when buying a house.
Regardless, the lower mortgage rates did boost buyer enthusiasm and optimism. The people buying homes have a significantly higher amount of monthly savings, and that is why they can extend their budgets.
Existing Home Sales is Promising
The pending home sales statistics are a good reason to be optimistic about the current real estate market in the United States. Existing home sales in August rose for the second month in a row. The increased buyer interest is actually resulting in closed deals since the rate cuts by the Federal Reserve. This spells good news for both homeowners and for buyers looking to buy real estate properties all over the country.
Are You Looking to Buy a House in Tampa?
Are you looking to take advantage of the lower mortgage rates and buy a home in the Tampa, Florida area? The time is right to invest in a home in the beautiful state of Florida’s Tampa Bay area.
If you need the support or guidance of experienced realtors who can help you get the best possible deal, you should contact the team at Enos Executive. For more information, just fill out the form here and let us know how we can be of service to you.