As you know, the Federal Reserve recently implemented a ½ point rate cut in an effort to stimulate our slowing economy. The fed mentioned that a major factor in our weakening economy is the real estate slowdown and the domino effect that this slowdown is having on related industries. The rate cut is expected to boost consumer confidence, consumer spending and decrease credit related monthly payments for many Americans, but will it be enough to stimulate new home sales? Will the rate cut have a significant effect on our nation’s real estate market? How much will it affect the Arizona real estate market?
The rate cut will most likely increase home sales some, but I’m not convinced that rising interest rates are the only reason why many people are not buying. Aren’t several people canceling? Aren’t many waiting to “know” when things can’t get worse?
In addition to rate cuts, I think the Fed should somehow reward responsible creative lending practices with lower borrowing rates. Regardless, the national attention and recent actions by the Fed give me hope that, in time, our nation’s real estate market will once again be robust. After all, it is the best time to buy! Any thoughts on what else we can do?
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