News & Insights

Home » News & Insights » The Interest Rate Cut and the Housing Market

The Interest Rate Cut and the Housing Market

Other

Photo by Ricardo Gomez, from Unsplash

On July 31st, the Federal Reserve cut the interest rate by a quarter point. While the impact of the cut may not be immediate, it should extend to the housing market.

With residential housing markets generally flat in many urban areas, some experts believe that the cut could be enough for prospective homeowners to finally make the jump into buying property. Further, there should be an uptick in refinancing.  Therefore, the cut will likely have a positive impact on the single-family home housing market.

Developers could also benefit. However, the impact will not likely be as pronounced because of rising material and labor costs.

While overall the cut is perceived as good news, some economists warn that the interest rate cut may actually dampen consumer confidence.  But, of course, there are those who believe the contrary and opine that the rate cut will head off a recession.

Larson, Keith. Here’s what a Fed rate cut would mean to the US housing market. (July 2019). Retrieved from  https://therealdeal.com/2019/07/31/heres-what-a-fed-reserve-rate-cut-would-mean-to-the-us-housing-market/

Recent Posts

Impact of Shorter COVID-19 Quarantine on Workplaces

On Monday, the CDC announced changes to its recommended isolation and quarantine time from 10 days to 5 days for asymptomatic people with COVID-19. They recommend that people leaving isolation after 5 days continue to wear a mask for the following 5 days. The CDC also...

Restaurants Sue Over Vaccine Mandate

Restaurant operators sued Mayor Bill de Blasio and New York City over Key to NYC, the new indoor vaccine mandate program, on August 17-the same day the mandate went into effect. A group of restaurants in Staten Island, through the Independent Restaurant Owners...

Financial Regulators’ New Target: Social Media Influencers and SPACs

The Financial Industry Regulatory Authority (“FINRA”) will conduct three new regulatory sweeps in an effort to combat various activities causing extreme fluctuations in the financial markets. FINRA has chosen to target special purpose acquisition companies (“SPACs”),...

Does WARN Apply to Virus Closures?

Enterprise, in Benson et al. v. Enterprise Leasing Co. of Florida LLC et al., has tried to argue that the Worker Adjustment and Retraining Notification Act (“WARN”), through its natural disaster exception, does not apply to closures caused by COVID-19. Two Florida...