Whenever the Fed cuts interest rates people wonder what it means for things like their credit card bills, their student loans or other debt and, of course, their mortgage.
Earlier this week the Fed made one of their most dramatic moves in recent memory, a surprise announcement on a Sunday that it would be cutting a key interest rate to near zero percent. The rate drop was an attempt to help stimulate an economy which was taking a major hit from the COVID-19 pandemic. The Fed also announced they would be buying $700B in government and mortgage related bonds so that banks would have cash available to continue offering loans and mortgages throughout the crisis.
So, what does this all mean for you?
Well, it's good news for homeowners and for those looking to buy homes.
Interest rates on mortgages already hit historic lows in 2020. Not surprisingly, the low rates drove up demand for new home purchases and refinancing of existing mortgages. That demand, coupled with fears surrounding the global economy from COVID-19, meant that mortgage rates were starting to slowly rise. This move by the Fed should keep mortgage rates down, eventually get them back to those historic lows and potentially keep them down for a while.
As far as mortgage rates go, this spring should be a great time to buy a new home. We understand that in many ways this not a normal time. At Stanley Martin, the health of our visitors, contractors and team is our top priority. Last week our president and CEO, Steve Alloy, announced a series of changes we've made in the way we do business during the COVID-19 pandemic. You can read a letter from Steve here which outlines those key steps, including allowing you to tour our homes while following the government's social distancing guidelines. Our Neighborhood Sales Managers are now available to give guided tours of our homes via Skype or FaceTime. You get to see the model home and have any of your questions answered about the neighborhood without having to leave your current home.
If you're interested in viewing a home virtually, call a New Home Consultant at 703-750-8627 today so they can help you find the neighborhood that best suits your needs and get your appointment scheduled, or just click here to schedule on your own.
We look forward to meeting with you and hope you and your family stay safe.
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