Here's a look at what the Federal Reserve's rate cut will mean for those looking to buy — or sell — a home.Lower mortgage rates are expected to spur more buyers to enter the housing market. A house for sale in Los Angeles last month is seen here.That will have an impact on the housing market – but it’s unlikely to make a huge difference for those struggling to afford a home.
He and his colleagues forecast that the average rate on a 30-year fixed rate mortgage will be about 6.2% by the end of this year — where it is now. That's tough for first-time homebuyers. Kim Kronenberger, a real estate agent in the Denver area, says she worries for the would-be homebuyers who keep waiting for affordability to improve.scared off by bidding wars during the low-interest-rate era — and were then rebuffed by high mortgage rates and still-high prices.
That's good news for the supply side of the housing equation — more homes getting built and into the market will relieve some of the demand that pushes up prices. But, of course, it will take time for those homes to be completed.Lower mortgage rates can certainly bring down a homebuyer’s monthly mortgage payments. But when home prices are sky-high, it will still be hard for many people to find a home they can afford.