Interest Rate Cut May Make the Best Time to Buy a Home

By: Sarah Goebel Email
By: Sarah Goebel Email

Right now may be the perfect time to buy a home, after a key interest rate was cut by a half-percent earlier this week.

This is the first time the federal funds interest rate has been cut in four years.

The Federal Reserve lowered the rate from 5.25 to 4.75-percent.

And one local real-estate agent hopes the decrease brings him more business.

Luke Williams has been selling houses for more than 18 years.

And he says this is the first buyers market in about six or seven.

"It's a great time to look at houses and get what you want. There's a lot of homes to choose from for buyers," Williams explained.

And with a key interest rate dropping a half percent, the price may be right too.

"When the Feds lower their rate, the banks lower their prime accordingly," Mortgage Loan Adviser Jon Crosby said.

Crosby says that the lower interest rate means buyers will be shelling out less dough for this dirt.

"The person who was going to hire a builder to custom build a home, they're going to have a construction loan at a half percent lower rate," Crosby assured.

And he says it's a win for everybody.

The builders get better rates on building loans and buyers are getting better rates on new or older homes.

"But, is it bad to be a seller? No, because it's balanced. Chances are if you're a seller then you're going to be buying a home as well," Williams admitted.

He said the average time a house spends on the market now is more than 100 days.

"We have to spend a little more time to get those homes sold. Not just place an ad in the paper and hope the home sells. We have to do more than that," Williams explained.

This makes his job a little harder, so he's hoping the rate drop helps.

"We'll start seeing some of those buyers that were sitting on the fence get back in the market and taking advantage," Williams assured.

And if that changes the housing market, whether it's a buyers or a sellers--it doesn't matter to Williams.

"People have to buy and sell their homes you know," Williams said.

If this is the time for you to buy a house, you can see some of the newest around.

The Parade of Homes in Bowling Green and Warren County began Sept. 20 and lasts through September 23.

For more information on the Parade of Homes, click here.

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