In a bold, decisive move to bolster the U.S. economy, the Federal Reserve Board has committed to lowering mortgage interest rates. This is exciting news for both home buyers and home owners.
For Home Buyers: Owning a home is cheaper than renting in the top 100 metropolitan cities, according to new research by Trulia.
For Home Owners: If you did not refinance because interest rates weren’t quite low enough to make it financially advantageous, keep an eye on rates. You’ll be glad you didn’t jump the gun by taking a marginally beneficial refinance if rates go lower.
There is one more category of people who will benefit from lower rates: Bankers, brokers, real estate agents, appraisers, and other professionals that receive spin-off business from the housing market. When people buy homes, they hire movers, painters, decorators, and buy furniture. When all these folks have income, they spend at restaurants, auto dealerships, retails stores, go on vacations, and more. The boost to local economies is far-reaching and beneficial to all.
The message from the Fed is clear: It will do whatever is necessary to give the economic recovery a leg up.