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The Fed Cuts Rates Again! How can current homeowners use this to their advantage?

Thursday, March 5, 2020   /   by Rachel Parsons

The Fed Cuts Rates Again! How can current homeowners use this to their advantage?

They say March comes in like a lion and goes out like a lamb. This year has been no exception, despite the mild weather. 

At the start of last week, stocks dipped, the US Treasury note yield fell to record lows, and fears of shortages of imported materials from China due to the Coronavirus outbreak flooded the news. In an emergency reaction, the Federal Reserve cut rates 0.5%.  

Unless you bought stock in face masks last year, you might be wondering how all of this really affects you.

Image result for stock market


For current homeowners, talk about current mortgage rates might feel like a thing of the past. But even if you snagged a great rate when you purchased, rates have dropped so significantly in the past year that it would be worth it to talk to a lender again. With current rates averaging below 4% on long-term loans, refinancing now could save you thousands over the course of your loan.

If you opted for an adjustable rate mortgage (ARM) when you purchased your home, that risk may have turned to great reward, as the Fed also dropped rates three times in 2019.

Considering switching to an adjustable-rate mortgage to take advantage of these rates? Make sure that you’d be comfortable making the highest possible payment, as rates are sure to climb again in the future. Alternatively, if you’ve been thinking about moving, plan to sell your home before the next rate adjustment period comes along.


Homeownership is at the fingertips of more people than ever, and lower interest rates means more purchasing power for more potential buyers. Additionally, many states, such as Delaware, sweeten the deal by continuing to offer credits and incentives for first time homebuyers

As for home sales, demand remains high. For new construction, until recently, home builder stocks were trading at or near record numbers. But fears of shortages of imported materials could grow, which could halt construction and sale across the country.

Inventory of homes for sale remains at record lows in Delaware and Southeastern PA. Combined with an influx of prospective buyers as interest rates drop, this trend is expected to continue.  

Have you considered making a move? Contact us to find out if now is the right time to sell

eXp Realty - Kat Geralis Home Team
Kat Geralis
3411 Silverside Road Suite 104
Wilmington, DE 19810

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