The Federal Reserve on Wednesday cut its benchmark interest rate by a half-point — the first cut since March 2020.
The move, which comes after more than two years of high interest rates aimed at taming inflation, is providing hope to potential home buyers in Colorado.
“I’m so excited,” said Alena Olorunfunmi, whose family has outgrown a home they purchased in Aurora in 2023. “It’s getting bright at the end of the tunnel.”
The benchmark interest rate went from a 23-year high of 5.25%-5.5% to 4.75%-5%, a reduction of half a percentage point.
Jerome Powell, chairman of the Federal Reserve, hinted that a rate cut was on the horizon after the top measure for inflation showed it fell to 2.5%, near the 2% target, in August. That’s down from its peak of 9% in the middle of 2022.
“Now we feel like we have more options,” said Olorunfunmi.
National Politics
Fed cuts interest rates by a half-point as inflation cools
Scripps News Staff
Olorunfunmi and her husband have been scouting larger homes since the recent birth of their daughter.