South Florida residents optimistic about lower interest rates
MIAMI - The interest rate has officially been lowered. It is down for the first time in four years.
The Fed lowered it Wednesday by 0.50 percentage points and CBS News Miami hit South Florida streets to get reactions.
We interrupted about half a dozen people, as they were enjoying a late lunch, right as the news was being announced.
Everyone said they had been standing by and waiting on the drop. Some even said they had been eyeing a major purchase and are now ready to act.
Novell Carter, who has a son in college, is hoping for better job security, hoping to see an increase in new home builds.
"Maybe, you know, help the home builders build a few more houses or something and encourage people to go out and buy a house now or something because, you know, there's a home shortage," he said.
Jonathan Ossi wants a new BMW. We asked what it meant to him. He said, "Right now, I'm paying a whole lot more every month on my monthly payments than I should be. I mean, they're charging so much interest—7.8% for a car loan. It's got to come down. I mean, nobody can afford it anymore."
Greta Monsegue said, "A percent on a purchase at $20,000. Is it really going to make a difference? Now, if a half percent maybe, if I'm purchasing something for half a million dollars maybe, but I don't see that it's going to affect my immediate pocket now. It may, but you know, I'm not sure."
Mayte del Rio, who is ready to buy a house, said, "Yes, I'm looking to buy a property, hopefully before the end of the year. And so hearing now 0.5, that's excellent news. I wish it would come down even lower."
Economists are optimistic more cuts could be forthcoming. So, if anyone is in the market for a major purchase, now may be the time to start getting those down payments together.