How The Fed Rate Cut Can Affect the New York City Real Estate Market

It's the news we've been waiting for. The Fed has just announced a larger than expected half point rate cut, with additional reductions possible this year. Mortgage rates had already come down in anticipation, though most people didn't realize it. The press this will receive is going to change that.

With their potential costs lessened and their purchase power increased, more buyers could enter the market. That increases demand for inventory, which would encourage more sellers to list their homes. Ultimately, it might result in more competition for both.

If you're a home buyer or seller and you want to avoid that scenario, get ahead of the herd mentality. Enter the market now.

Buyers who are considering waiting for rates to come down further, keep this in mind. Even if you got an offer accepted on a co-op or a condo today, it will be at least 2-3 months before you close. Ask your lender about a mortgage rate lock float down. This will lock in your rate during the underwriting period, with the option to reduce it if market interest rates fall during that period.