The Federal Reserve's Latest Move: What It Means for You

Dated: September 18 2024

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The Federal Reserve's Latest Move: What It Means for You

On Wednesday, the Federal Reserve made its first interest rate cut since the early pandemic, lowering the benchmark rate by 0.5 percentage points.

How Does This Affect You?

  • Prime Rate: Expect a corresponding drop in the prime rate.
  • HELOCs and Home Equity Loans: These are usually linked to the prime rate, so you should see an immediate impact on your loan rates.
  • Long-Term Residential Loans: These are more closely tied to the 10-year Treasury yield, which has been declining for months. Today’s cut will have little to no effect on these rates.
  • Commercial Real Estate Loans: Rates for these loans have already decreased somewhat in anticipation of this cut. We expect them to drop further with today’s 0.5-point reduction and potentially continue to fall if the Fed makes more cuts this year. Some analysts predict a total reduction of 1.0-1.5 points by year-end.

For personalized advice, contact one of our Agent Roster!

Anthony de Movellan

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Anthony de Movellan

We attract agents and clients who recognize and respect the value of relationships and great customer service. Professionals who are interested in raising the bar individually, in our community and wi....

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