What an interest rate cut could mean for the Connecticut real estate market
Sep. 19—With prospective
"We'll be looking at the way the economy reacts," said
At the 5.25-percent to 5.5-percent range that has been in place since
This time around, it has been overall inflation from food to the cost of energy that has been the sticking point for the economy, with the Fed having raised rates 10 times since
Whether the Fed rate cut has any immediate impact on the market will not be known for at least a few weeks as buyers and sellers reassess their prior assumptions on interest rates and the cost of any new mortgages.
"We're hoping that it moves the needle a little bit," said
Buyers have been waiting for more houses to hit the market statewide, with some cities and towns seeing increases but others still in waiting mode. As of August, there were nearly 9,700 houses and condos listed for sale in
Demand also appears to be cooling by one Redfin measure, with just over 22 percent of
Two weeks ago,
The chief economist for the
"Due to the already low mortgage rates compared to spring, the purchasing power for home buyers has been lifted by around
Powell said he does not expect any instant relief for renters who are paying out far more today than as a result of hefty lease renewals, with any easing in apartment prices likely to take years in his view.
"The leases that are rolling over are not coming down as much," Powell said. "It's been slower than we expected — I think we now understand that it's going to take some time for those lower-market rents."
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