TYLER, Texas (KLTV) – As mortgage rates continue to fall, real estate agents and lenders in East Texas predict more buyers and sellers will impact the local real estate market.
According to Freddie Mac, the nationwide mortgage rate is just under 6.5 percent, the lowest in 15 months.
“I find that once people start talking about falling interest rates, even the smallest drop will bring more buyers into our market and sellers will be able to list their home with more confidence knowing they can buy something else,” says mortgage lender Amber Bowlden.
She predicted that falling interest rates would have eased some of the concerns of homebuyers who had waited to list their homes until they knew loans would become more affordable, adding that this varies from customer to customer.
“Even the smallest interest rate cut can increase their purchasing power,” she said.
On Friday, Federal Reserve Chairman Jerome Powell hinted that a rate cut could come in September: “It is time to adjust policy. The direction is clear, and the timing and pace of rate cuts will depend on upcoming data, the evolving outlook, and the allocation of risks.”
Although the federal interest rate does not determine lenders’ interest rates, it does influence them.
Bowlden said she would advise clients not to wait until Sept. 18, when the Fed will hold a monetary policy meeting and possibly decide on a rate cut. She added that lower rates would inevitably lead to more demand and competition.
“You may find the house, get a sales contract, and then you can set the interest rate later. That’s something you can talk to your lender about,” says East Texas real estate agent Shannon Franzen, who gives her clients similar advice to Bowlden.
According to the National Association of Realtors, existing home sales rose 1.3 percent in July.
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