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Should you buy a home after the Fed’s big rate cut?
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Homebuyers have waited for years, literally, for some economic relief. After mortgage interest rates plunged in 2020 and 2021 following the height of the pandemic, they made the opposite move in 2022 and 2023 thanks to inflation and a rising federal funds rate. The latter eventually rose to a range between 5.25% and 5.50% last summer, the highest it had been in 22 years. And mortgage interest rates followed, hitting their highest point since 2000 in August 2023.
In 2024, however, inflation has fallen significantly. And that, in large part, sparked the Federal Reserve’s decision this week to reduce the federal funds rate by a half percentage point, which was a stronger action than many economists anticipated. Before that even happened, however, mortgage interest rates preemptively reacted, hitting an average of 6.15% — the lowest in two years. The potential for further reductions is significant, too.
Against this evolving landscape, then, buyers may be wondering if they should buy a home after the Fed’s big rate cut. Below, we’ll detail three reasons why they may want to now.
Start by seeing what mortgage interest rate you can lock in here.
Should you buy a home after the Fed’s big rate cut?
There are some major advantages to buying a home now following the Fed’s rate cut action. By acting now, you’ll specifically:
Save money
If you had bought a home during this same week in 2023 you would have paid 7.19% on a 30-year mortgage, according to historical data from Freddie Mac. But you would pay just 6.15% on that same loan by acting now, instead. What does that mean in dollars and cents? On a $427,000 mortgage loan — the average home cost right now — it’s the difference between paying $2,895.54 per month and $2,601.40 per month. That’s a monthly savings of approximately $295, or around $106,000 saved over the life of the loan. So don’t wait.
Get started with a low mortgage interest rate loan online today.
Less competition
While today’s mortgage rates are on the decline, they still pale in comparison to the sub-3% rates of 2020. So you may have less competition amid buyers if you act now versus waiting for additional rate cuts to come. As rates decline, more buyers will inevitably enter the market, increasing the competition for limited inventory. And a bidding war over select properties could become the norm once again. Acting now avoids that very possible scenario.
Reasonable home prices
Home prices are on an upward swing right now. But if you think that will change once rates come down and more buyers join the fray, you’d be mistaken. In that circumstance, prices will likely increase even further as sellers look to capitalize on the growing buyer market. This will make today’s home prices look reasonable in comparison to what they could be listed for in 2025. These potentially higher prices could more than negate any savings you get with another 50 basis point rate cut, too, thus emphasizing the risk of waiting to buy a home.
The bottom line
For millions of buyers, now may be a smart time to purchase a home. While today’s mortgage rates aren’t as advantageous as they were a few years ago, historically, they’re still on the low end. And by acting now buyers can potentially save significantly more than if they had acted last September instead. Combined with the growing potential for stronger competition amid buyers and another rise in home prices, for many, now could indeed be the time to act.
CBS News
New York confirms its first case of EEE since 2015. Here’s what to know about the mosquito-borne virus.
NEW YORK — A New York resident has tested positive for the mosquito-borne eastern equine encephalitis virus, the state health department said Friday. It’s the first human case of EEE in the state in nearly 10 years.
The patient lives in Ulster County and is currently hospitalized, state health officials said. The Ulster County Department of Health is investigating. Earlier this summer, a horse in Ulster County also tested positive for the virus, according to health officials.
The last time there was a human case of EEE in New York state was in 2015.
There have been at least 10 cases of EEE reported across the United States this year, including one case in New Jersey and a deadly case in New Hampshire.
What is EEE?
According to the state health department, EEE is a rare but severe viral disease spread by infected mosquitoes.
Most people who are infected with EEE will not develop symptoms, health experts say, but early symptoms of severe cases include headache, high fever, chills and vomiting. It is deadly in approximately 30% of cases, and those who survive may suffer neurological impairment.
There is no vaccine for EEE.
Health officials urge New Yorkers to continue taking efforts to protect themselves from mosquito bites, such as wearing long sleeves and pants when outdoors, using insect repellents, putting screens in windows and doors, and getting rid of any standing water around yards and homes.
CBS News
Arizona Supreme Court rules that 98,000 people without confirmed citizenship docs can still vote in state races
The Arizona Supreme Court ruled Friday that nearly 98,000 people whose citizenship documents hadn’t been confirmed can vote in state and local races.
The court’s decision comes after officials uncovered a database error that for two decades mistakenly designated the voters as having access to the full ballot.
Secretary of State Adrian Fontes, a Democrat, and Stephen Richer, the Republican Maricopa County recorder, had disagreed on what status the voters should hold. Richer asked the high court to weigh in, saying Fontes ignored state law by advising county officials to let affected voters cast full ballots.
Fontes said not allowing the voters who believed they had satisfied voting requirements access to the full ballot would raise equal protection and due process concerns.
The high court agreed with Fontes. It said county officials lack the authority to change the voters’ statuses because those voters registered long ago and had attested under the penalty of law that they are citizens. The justices also said the voters were not at fault for the database error and also mentioned the little time that’s left before the Nov. 5 general election.
“We are unwilling on these facts to disenfranchise voters en masse from participating in state contests,” Chief Justice Ann Scott Timmer stated in the ruling.
Arizona is unique among states in that it requires voters to prove their citizenship to participate in local and state races. Voters can demonstrate citizenship by providing a driver’s license or tribal ID number, or they can attach a copy of a birth certificate, passport or naturalization documents.
Arizona considers drivers’ licenses issued after October 1996 to be valid proof of citizenship. However, a system coding error marked nearly 98,000 voters who obtained licenses before 1996 — roughly 2.5% of all registered voters — as full-ballot voters, state officials said.
The error between the state’s voter registration database and the Motor Vehicle Division would not have impacted the presidential race. But that number of votes could tip the scales in hotly contested races in the state Legislature, where Republicans have a slim majority in both chambers.
It also could affect ballot measures, including the constitutional right to abortion and criminalizing noncitizens for entering Arizona through Mexico at any location other than a port of entry.
In a post on the social platform X, Richer thanked the court for quickly reviewing the case and Fontes for partnering with him to address the error.
Vienna, Virginia — It started as a friendship outside the weight room of James Madison High School in Vienna, Virginia, between a group of sophomore football players and the school custodian, Francis Apraku.
“If we had a bad day, he’d be the first guy to be like, ‘Hey, are you OK?'” student Bennett Hibshman said. “And we’re like, hey, let’s do something nice for him. No one else is going to.”
One day, the group asked Apraku, if he could have one splurge, what would it be?
“My heart’s desire is a Jeep Wrangler,” Apraku told CBS News. “That’s why I’ve tried to work hard.”
Owning a Wrangler was a pipe dream for Apraku, who regularly sends money to his relatives in Ghana. So, the students started a fundraising campaign that brought in about $22,000 in four months. With the money, they purchased a 2015 Jeep Wrangler and surprised him with it earlier this month.
When Apraku saw the Wrangler in the school parking lot, he said the gesture brought him to his knees.
“My leg started shaking,” Apraku said. “I can’t stand, I can’t stand. I was panicking! and I had to get myself on the floor and I was crying.”
He was so surprised to see his new set of wheels, he started actually rolling on the ground.
“It got a little to the point where it was like, is he OK? Making sure he’s OK, and we helped him up,” student Logan Georgelas said.
The students said that when they finally got him to the car, he was in disbelief.
“I will never, ever forget today,” Apraku said. Not because of the car, but because of the kids.
“I can’t believe this in America, only in America,” he added.
Jeep was also moved by the story and told CBS News it will be gifting Apraku a package that will cover his oil changes and tire rotations for the next six years at his local dealership.
contributed to this report.
New York confirms its first case of EEE since 2015. Here’s what to know about the mosquito-borne virus.
YMCA of the North announces layoff of 69 workers
Arizona Supreme Court rules that 98,000 people without confirmed citizenship docs can still vote in state races
New York confirms its first case of EEE since 2015. Here’s what to know about the mosquito-borne virus.
YMCA of the North announces layoff of 69 workers