Fed interest rate cut could spur real estate market
As markets around the world tumbled on Black Monday, the Fed decided in an emergency meeting to cut interest rates to spur the economy and keep markets steady.
The move by the Fed seemed to hold off a general downturn in the stock market. However, the effect on the housing market remains to be seen. The Fed cut the federal funds rate by .75 percent, the largest single drop in the interest rate in more than 20 years. This rate is used to determine mortgage rates, car loans, and consumer debt, meaning that buyers could start to see an immediate benefit.
Major banks have already cut mortgage rates for qualified buyers, which could serve to bring prices up on homes and condos around the Chicago region. As buyers pay lower interest, monthly payments can drop while the overall value of the home rises.
The overall effect of lower rates in the housing market will not be seen for a few months, but is welcome news for homeowners on adjustable-rate mortgages and new buyers in the market. Be the first to take advantage of lower rates. Browse through the best Chicago Condos For Sale today.
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