The Federal Reserve today cut interest rates for the first time since the Great Recession took hold in 2008. The Fed says its decision to lower interest rates a quarter-point , which comes after months of pressure from President Donald Trump, is designed to stave off the threat of an economic downturn.
Lower borrowing costs are helping buyers manage rising home prices. For example, buyers who spend $1,500 on monthly mortgage payments can afford to purchase a $402,500 home this year compared to $367,500 last year, when mortgage rates averaged 4.57%, according to realtor.com®. “Last year, buyers would have needed an additional $145 a month on top of the $1,500 to afford a $402,500 home,” says Danielle Hale, realtor.com®’s chief economist.