Buffalo, NY (WBEN) Federal Reserve Chairman Jerome Powell hinted Friday he may lower interest rates. For many here in Western New York, it may be a good time for a big ticket buy that requires borrowing.
Mike Lomas of The Financial Guys believes Powell is spotting weakness. “Certain housing markets, not necessarily Buffalo, New York here, we’ve been pretty steady, but areas around the country that were, ‘hotter real estate markets’ have really, really cooled down in the last few months and so the economic numbers are pointing to a need to stimulate growth,” says Lomas.
Lomas says lowering interest rates means more money in your pocket. “Folks who bought a home or a car in the last 12 months, if interest rates start to go down, they may refinance that, but it’s more money in your pocket on a monthly basis,” says Lomas. “If you’re borrowing on a 30 year mortgage at five and a half percent, as opposed to six and a half, that’s real money every month that’s going to go in your pocket and go out and buy other things and help stimulate economic growth.”…