"The Fed" Lowers Rates Yet Again!
Scott P. Rogers
Yesterday "The Fed," or The Federal Reserve, lowered the federal funds rate by 0.75% --- from 4.25% down to 3.50%. Generally speaking, reducing this rate leads to more economic activity, as it lowers the interest rate for money loaned between banks overnight.
What will it mean for real estate in Harrisonburg and Rockingham County?
First, it is important to realize that a 0.75% decrease in the federal funds rate will not equate to a 0.75% reduction in interest rates that home buyers will obtain for their real estate purchases.
However -- for most home equity lines, homeowners will see a reduction in their payment as the prime rate decreases.
What will it mean for real estate in Harrisonburg and Rockingham County?
First, it is important to realize that a 0.75% decrease in the federal funds rate will not equate to a 0.75% reduction in interest rates that home buyers will obtain for their real estate purchases.
However -- for most home equity lines, homeowners will see a reduction in their payment as the prime rate decreases.
