Today the Federal Reserve lowered interest rates by 1/4 percent. Many had hoped it would lower rates by 1/2%, but the Fed tends to be cautious when it either raises or lowers rates. Typically, it moves in 1/4% moves.
This should lower interest rates on adjustable rate mortgages and improves affordability for real estate loans in general. Real estate prices and rental rates continue to be in an uptrend. However, real estate prices have slowed their upward trend this year. Some observers have been concerned about the possibility of falling prices. So far, however, this hasn’t happened. The latest Fed move should help to prop up the market.
Unfortunately, construction of new homes isn’t keeping up with demand and the rental market continues to be “tight”. This situation continues to put upward pressure on rental rates, and there doesn’t appear to be any relief in sight.