BAKERSFIELD, Calif. (KERO) — The Federal Reserve announced its first interest rate cut in nine months, potentially providing relief for prospective homebuyers who have been priced out of the market.
The Federal Open Market Committee decided Wednesday to lower interest rates by a quarter percentage point, a move that could significantly impact the housing market.
"Strengths in making their purchases, better strength with the lenders. And it will allow them to perhaps buy a little bit bigger house or perhaps the house that they had selected will have a smaller, somewhat smaller payment," Jeanne Radsick with the Bakersfield Association of Realtors said.
Radsick noted that there are currently more homes on the market, which could benefit buyers.
"It allows for better buying opportunity. The biggest part that it allows is that their payments will be more reasonable feeling to them," Radsick said.
Michael Turnipseed with KernTax acknowledged the difficulty of the Federal Reserve's decision, given its widespread economic impact.
"They're like the overseers of the economy. It's like, who are those seven smartest people who know more about money, know more about how the economy works than anybody," Turnipseed said.
With anticipated changes ahead, Radsick advised potential homebuyers to thoroughly research their options before making purchases.
"Be sure that you are working with a qualified lender, someone that will help guide you. I mean, I've been in the market for a very long time, and yes, I can talk in general terms to my buyers, but I am not a lender. So talk to your lender and see what the best deal is. Perhaps an adjustable rate will work for you, perhaps not," Radsick said.
According to the Federal Reserve, additional rate cuts could occur in the future.
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