What does a half point cut mean for Southwest Florida’s housing market? [Video]

LEE COUNTY, Fla. — The Federal Reserve cut interest rates by .5%. We have not seen this substantial of a cut since 2020. It’s the moment many home buyers have been waiting for.

Tim Hart is a loan officer with VanDyk Mortgage.

“Any times those [interest] rates go down, it gives homeowners a lot more options,” he said.

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Federal Reserve cuts interest rate by a half point

He explains it’s likely to see more people refinancing their homes under a lower interest rate than when they purchased, lowering their monthly bill.

For people who are looking to buy, he says, their purchasing power increases.

“Now they can afford more so they can go from $300,000 to maybe qualifying for $350,000,” he said when referring to the cost of a home.

Victor Claar, a professor of economics at FGCU says this decision works to stabilize the money market.

“The Fed raises interest rates like they have been when they’re fearful of inflation and they cut when they’re afraid of …