The recent rate cut by the Federal Reserve has not had a significant impact on the housing market, according to economists surveyed. While the rate cut may lead to a reduction in interest rates on loans tied to the prime rate, such as home equity lines of credit, the effect on mortgages has been more modest. The housing market has seen a slowing trend, with an increase in inventory and longer days on the market. Economists do not anticipate a recession but predict slower growth and moderate home price gains. While lower interest rates have not significantly increased demand for housing, there has been an uptick in home sellers due to job losses and high homeownership costs. Homeowners with low mortgage rates are less likely to sell, and the region’s median home price is expected to flatten over the next year. The prime rate is predicted to decrease, while mortgage rates may hover around 5%. Despite the rate cut, the housing market remains subdued, with only certain types of sellers, such as those facing life changes, actively participating. Borrowers are seeing lower mortgage rates, with the 30-year fixed rate averaging 6.09%. Overall, the housing market is experiencing a period of adjustment, with moderate changes expected in the near future.
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Home prices will moderate as inventory rises due to rate cut – Daily News
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