Interest rate cuts could be good for Lubbock homebuyers and sellers

LUBBOCK, Texas — As a realtor, Michael Hutton said hearing that the Federal Reserve cut the interest rate by a half-percent Wednesday was a big deal.

This is because the new interest rate, which is between 4.75 and 5 percent, has a ripple effect across the economy, leading to changes in other interest rates, including mortgages.

“This change as a realtor is very good news,” Hutton, who is the president of the Lubbock Association of Realtors said. “It’s exciting to hear that this may stimulate the market and make our jobs a little a little better and busier in the coming months.”

The lower interest rate could make for lower mortgage rates, easier qualifications for mortgages, a stronger demand for housing and improved housing affordability, according to the National Association of Realtors . Those changes impact the housing market as a whole, including realtors, buyers and sellers.

“I think you’ll see more people wanting to get into the market,” Hutton said.

Wednesday’s interest rate cut was the first and biggest cut since March 2020.

“I think this will stimulate buyers. There have been a lot of folks who are in homes with low interest rates who’ve been waiting for that trend to happen,” Hutton said.

Hutton is hoping for a busy next couple of months in the housing market, so he can get more homebuyers into their dream homes.

“We have quite a bit of inventory ready to go,” Hutton said. “We encourage those who are on the fence to take this opportunity to get lower interest rates and jump into their new home.”

The next Fed meetings are scheduled to take place Nov. 6-7, following the upcoming presidential election.

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