Can someone explain what .5% rate cut means to the mortgage rates to first time homebuyers?

Question

Can someone explain what .5% rate cut means to the mortgage rates to first time homebuyers?

In: Economics

Answer 1

If you are a U.S. first time homebuyer, it generally means that while not immediate – most mortgage lenders will decrease their rates in the near-term (~30-60 days). Note, this does not mean you could expect a .5% rate cut off of today’s rates, but they are likely to go down in the future instead of up for most buyers, including first time buyers. Good luck and shop around!