The Federal Reserve Open Market Committee has elected to cut interest rates for the first time since the early months of the pandemic. This decision will lower the federal funds rate to a range of 4.75% to 5%. The rate cut will have major implications for the housing market, including possibly alleviating affordability concerns and stimulating growth in inventory. First-time home buyers should especially benefit from the rate reduction and buyers of a median-priced home could save approximately $250 per month on their mortgage payments.

A period of rate cuts will have a positive impact on lending conditions for developers and builders. More positive lending conditions could also have an immediate impact on housing supply. Read more here >>