Life Kit: Money Interest rates just dropped — how does that impact you?
Sep 19, 2024
Laurel Wamsley, a financial expert from NPR, joins the conversation to unpack the Federal Reserve's recent interest rate cut. She explains how this change impacts high-yield savings accounts and offers advice for recent homebuyers considering refinancing. Wamsley also discusses the ongoing challenges in the housing market, including high prices and shortages. Listeners will gain insights into navigating their finances amidst shifting interest rates and learn about new opportunities for savings.
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Lower Rates Help Buyers But Not Prices
- Mortgage rates already fell a full point from May and may decline slightly more as the Fed keeps cutting rates.
- Lower rates increase buying power but likely won't reduce high home prices due to limited housing supply.
Refinance If You Bought At Very High Rates
- If you bought a home in the last couple of years near 8% rates, consider refinancing now that rates dropped significantly.
- Check whether your current rate is above today's offers before starting a refinance.
Most Homeowners Remain Locked In Low Rates
- About 60% of U.S. mortgages are below 4%, so most homeowners won't benefit much from rate cuts.
- Falling rates may still nudge some owners to move and increase home listings.