Based on the Fed's new decision, interest rates are now reduced by a quarter percentage point, moving to a range of 4.25 and 4.5 percent.
What's NewThe Federal Reserve lowered interest rates once again this week, and the move has many wondering how this will impact mortgage rates and the larger housing market.Based on the Fed's new decision, interest rates are now reduced by a quarter percentage point, moving to a range of 4.25 and 4.5 percent. That is the same level interest rates were at in December 2022.'Today was a closer call but we decided it was the right call,' Fed chair Jerome Powell said.
'Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: 'Unless something dramatic happens, it's fair to say the jubilation over the housing market for 2025 was certainly a situation of putting the cart before the horse.'He added: 'While interest rates were cut, and we can expect two more cuts next year, this is less than the four originally expected.
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