Federal rate cuts expected to impact local housing market in the long run [Video]

Last week, the Federal Reserve cut interest rates for the first time in four years. We’re digging into how this will impact the local housing market as part of our “Price of Paradise” series.

We spoke to several experts working to clear up confusion and misconceptions about the recent rate cut.

“Everyone thinks when the fed cuts interest rates, then mortgage rates go down. Unfortunately, that’s not the case,” Jon Howard with Howard Team Loans said.

Howard explained that the rate cut has the quickest impact on short term rates, but there is no direct correlation or equation to know how exactly it will impact long term mortgage interest rates.

With that being said, mortgage rates are trending down and Howard said he thinks they will continue to fall over the next few months.

“Interest rates are finally coming down. A couple of months ago, we were in the 7s, …