DENVER — For the first time in four years, the Federal Reserve cut its key interest rate.
The move will impact everything from mortgage rates to credit cards. With the cut, there's welcome news for many in the real estate industry.
When it comes to buying a home, realtor Amanda Snitker knows it isn't always easy.
"It's emotionally stressful, it can be financially stressful," said Snitker, Denver Metro Association of Realtors Market Trends Committee member and longtime realtor.
But, the Fed slashing interest rates half a point could make navigating the real estate market a more pleasant experience.
"I think it's just, it's good all around for everybody," Snitker said.
Mortgage rates have already been dropping as a result.
And here in Denver, that cut could open up more options in a market that's often tight.
"Yes, it's actually great for buyers and for sellers. A lot of sellers are in a property with a lower interest rate and are having a hard time justifying selling a property with that low interest rate locked in, even if the home doesn't meet their needs anymore," Snitker said. "And so as interest rates come down, that margin narrows for sellers and they're able to make a decision about their housing in a way they haven't been over the last two years."
And while that drop in interest rates could create a surge in interest, Snitker said it likely won't be as wild a market as we saw just a few years back.
"I'm hopeful that we aren't going to see quite the intensity that we saw during the pandemic years. We are seeing many properties with multiple offers and going under contract within the first weekend," Snitker said. "So if you're looking at a property that's in a really prime location and it's in really great condition, you should be prepared that you could be in a competing situation."
Still, this interest rate drop from the Fed comes at the tail end of summer — she said that's typically a time where they tend to have more homes on the market. For folks who've been watching and waiting on when to buy, Snitker said this cut is carving out a window.
"Yeah, it's a good little sweet spot where buyers are going to have a good amount of inventory to choose from and a little more affordability with the lower rates," Snitker said.