ORLANDO, Fla. – The Federal Reserve is expected to meet tomorrow, and all eyes are on what could be the first rate cut since 2020. With the current federal funds rate sitting at its highest point in 23 years—between 5.25% and 5.50%—consumers are left wondering how this decision will impact their wallets.
Orlando housing experts weighed in on where and when consumers might see relief, especially in the housing market.
“The question is, are they going to be cutting 25 basis points or 50 basis points? We’re projecting that there will be a cut based on the language leading up to the meeting tomorrow,” said Tony Colmenares, a mortgage broker in Orlando.
Experts like Colmenares suggest that if the Federal Reserve lowers rates, it could be a positive signal for potential homebuyers who have been sidelined by high borrowing costs.
“If rates come lower, I think we’re going to see a spike in interest from buyers looking to purchase,” said Richard Aybar, a realtor based in Orlando. “This will also help sellers who have been contemplating about selling their home.”
Colmenares added that with mortgage rates currently averaging about 6.4%, a rate cut could ease the financial burden on borrowers. For example, on a $400,000 home, buyers could save around $400 a month if rates continue to drop.
While hopeful, both Colmenares and Aybar cautioned that mortgage rates might not fall significantly right away, as lenders could have already factored in the anticipated cuts.
“We may not see an immediate impact,” Colmenares explained. “However, how this helps the market is because we understand that, you know, it’s sort of a domino effect, right? This one comes in, we look at the numbers, and then at that point, they’re going to determine if another one’s [going to] come in.”
For those considering entering the housing market, the potential rate cut could offer more affordable opportunities.
“Never give up hope and never say you can’t afford anything,” Aybar advised. “My advice is always to consult with a loan originator or officer.”
While future homebuyers may not feel the full effects of a rate cut this week, even a small reduction could influence monthly mortgage payments, providing a glimmer of hope for those chasing the dream of homeownership.
Get today’s headlines in minutes with Your Florida Daily: