Interest Rate Cuts!? What does this mean?

I wanted to take a quick moment to bring up the article below.  It is more optimistic than we have been hearing over the last half year about the sky falling and a recession.  

I tend to watch the Federal Reserve's behavior to have a bit of insight of what might be happening with mortgage rates in the future. 

When the Federal Reserve increases the federal funds rate, it becomes more costly for banks to borrow money. In response, banks often transfer these elevated costs to their customers, leading to an increase in interest rates on various consumer loans, including mortgages. This has been the trend in the real estate market over the past 16 months.

When the Federal Reserve decides to reduce interest rates, it is expected to have a downward impact on mortgage rates.

Does that mean you should sit back and wait till later to time the lowest rates? Well, it depends on your strategy and where you're at. Right now buyers have a decent amount of leverage. Leverage means negotiation power. Negotiating power means, getting a better deal for the buyer. 

Feel free to give me a call today if you'd like to discuss how you can use that financial advantage to buy a house at a lower price. Additionally, we can explore the option of refinancing when interest rates are close to their lowest..  When the rates get below 6%, buyers will be going crazy again and their will be more competition like we saw recently.