NORTH TEXAS – Whether it’s topping off the tank or restocking the pantry, inflation-fueled higher prices have been a near-universal concern.
News of a Federal Reserve interest rate cut sounds like a good idea, especially if you’re carrying balances on a credit card or looking to buy a home. However, some experts say the immediate impact might be mostly mental.
“Even though the Fed may cut their rates, that does not mean that (mortgage) interest rates are gonna drop,” said Geni Manning, a veteran North Texas realtor. “They don’t go together always.”
Manning said many lenders already anticipated the Fed rate cut and mortgage rates were already easing down. Still, she said the factors that influence mortgage rates are complicated, so she’s urging would-be buyers to avoid trying to “time the market.” As Manning explained, lower mortgage rates will attract more buyers competing for available housing stock—and that drives housing prices up.