How Lower Interest Rates Can Benefit Your Home Purchase

Learn about the recent drop in interest rates and its potential benefits.

With all the chaotic and controversial news in the world lately, it's nice to have a bit of good news on the interest rate front. I've invited Christian Peter from Sente Mortgage, to give you the latest news on this development. 

We've all been holding our breath for what feels like years now due to the high interest rates caused by inflation. You've probably felt the pinch at the grocery store, with budgets stretching further than ever before. The same goes for buying a house—monthly payments are significantly higher than they were a couple of years ago. For instance, in 2016, a salary of $43,000 could afford a house, but in 2023, that number has skyrocketed to needing $70,000 to $90,000.

"The exciting news is that we had a positive inflation report last week."

The exciting news is that we had a positive inflation report last week. For the first time in a long while, the inflation rate was below 1%. If this trend continues, it could prompt the Federal Reserve to lower interest rates, potentially as soon as their next meeting in September. This could mean lower house payments, freeing up sellers and giving buyers a much-needed break.

We're hopeful that this is the beginning of a positive shift. I know many of you have been eagerly awaiting a market correction to make buying a home more accessible. Let's keep our fingers crossed for more good news in the coming months. 

Thank you for tuning in, and a big thanks to Christian Peter for his insights. If you need to get pre-qualified, refinance, or explore home equity loans, Christian is your go-to guy. You can find his contact information below and on our website. As always, if you're thinking about selling or buying, give us a call. We’re here to help!