Rate Cut of .75 Points – What it means to Tri Valley Home Buyers

Last night I was at Redcoats in Pleasanton with my friend Brian LaBars of Green Mortgage Group and as it normally happens we were talking about the real estate market and the recent rate cut by the Fed of .75. This brings the bank rate from 4.25 down to 3.5. The Fed had a meeting set for the end of the month on the 29th to make an expected cut, but did so early to avoid a recession yesterday. Will we see another cut at the 29th meeting, possibly.
What does this mean for Tri Valley home buyers and people looking to sell their homes? If you are looking to purchase a home, then obviously you have greater borrowing power and for sellers this means the amount of buyers looking at your home has gone up because people are now able to afford more. Not all loans will be effected the same. A 30 year loan will not have the same effect on a borrower from the cut as an ARM will. For more information on different loans and how they are effected, talk to Brian LaBars on how this cut can help you as a buyer or seller.