COLORADO SPRINGS, Colo. (KOAA) — The Federal Reserve is expected to announce its lower interest rate on Wednesday for the first time since 2024.
Home buyers and sellers in Colorado Springs are watching closely, hoping for some relief on mortgage rates.
A home seller, Jack Penrod, says he and his wife lived in their home for decades until her passing earlier this year.
"She passed away... January 26th. I didn't want to live in it by myself," said Penrod.
He decided to sell his home, but he says the market wasn't easy.
"Interest rate was the one thing," said Penrod. "There were a lot of houses on the market."
A local realtor, John Harding, says Penrod's experience reflects what many buyers and sellers are facing.
"There's so much uncertainty," said Harding. “Any tick down in interest rates could mean one more buyer gets back into the market.”
But will the Federal Reserve's interest rate cut make a difference for mortgage rates?
Loan strategist Ryan Jahnke with 719 Lending explains that mortgage rates don't move directly with the Fed. He says the bond market sets them.
“Mortgage rates actually change in anticipation of the Federal Reserve dropping its rate,” said Jahnke.
He says if the Fed drops rates more than the market expects, it could bring some improvement.
Harding encourages home sellers to be patient when selling their homes.
"It's going to take a while," said Harding. "Buyers, it's a great time for you because now you've never had better selections in Colorado Springs than you have right now."
For more information, visit 719 Lending's website.
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