Fed Expected to Lower Interest Rates

The Fed is expected to cut interest rates this month, and while it’s unclear how much of an impact it could have on the overall economy, it could be a great time to investigate your mortgage rate.

“This has not been a particularly credit-sensitive economic expansion, with households still generally risk-averse after the shock of the financial crisis,” according to Conor Sen at Bloomberg. “There may be some trickle-down effects if market psychology improves from lower rates, but it's not clear whether the tweaking of monetary policy at the margins matters much for the U.S. economy right now.”

However, with an estimate that the target rate cut will come at 0.5 percent, if you’re in the right real estate situation, you could be a “winner.”

According to Bankrate, borrowers with variable-rate loans—the bigger loan, the bigger savings—could see the biggest positive impact. The lowering interest rates will also be good news for would-be home buyers entering the market, and those who are looking to refinance. Both groups should take advantage of the rates now, according to experts.

Just don’t wait too long. “The best course of action for homebuyers is to decide whether they can afford the home they want based on their down payment and current mortgage rates,” says Bankrate’s Natalie Campisi. Waiting for rates to drop even lower could mean you’re missing an opportunity.