Colorado realtor says The Fed's interest rate cut "signals a good time to make big purchases, especially homes"
A Colorado real estate broker says Wednesday's announcement by the Federal Reserve that they are lowering the interest rate by .5 percentage points was somewhat expected and that he was somewhat ready for it.
"I thought the Fed was going to be a little bit more conservative and do a 0.25 percentage cut. However, the 0.5 is where we're at. So not shock, not surprise," said Brett Weinstein, the CEO of Guide Real Estate.
That means it costs consumers less in interest to borrow money.
"Where it's going to benefit us right now is that interest rates, credit cards, car loans and in particular mortgage rates are going to go down and go down fairly sizably," said Weinstein.
It's a sign that inflation is cooling across the nation and signals a good time to make big purchases, especially homes. But Bret says don't expect home prices to fall in the Denver metro area.
"Denver's going to remain an expensive market," said Weinstein.
He says while there is a lot of inventory right now, the winter months will see a seasonal dip in the number of homes for sale. That, combined with more people entering the market for a new home because of those lower interest rates, means this spring buying a home in Denver will be a tough thing to do.
"Buyers are going to be bidding and competing for houses again," said Weinstein.
Bret says if you can buy a house, do it now.
"If you're thinking about buying, you probably don't want to wait till 2025, because if we see another half point interest rate reduction, we're going to be off to the races," said Weinstein.
