The Federal Reserve just made its third interest rate cut of the year dropping the federal funds rate another quarter point to a new target range of 3.50% to 3.75%. That's good news for the economy on paper, but what does it mean for your mortgage, your savings, or your next big move in Pembroke Pines?

Let's break it down.

Read the article here:
👉 Read the Wallstreet Journal article here

The Fed is trying to thread the needle
Inflation is still above target, but unemployment has started to creep up. The Fed is walking a tightrope, lower rates too fast, inflation could bounce back. Move too slow, the job market could suffer. This cut is a signal they're trying to support the economy without giving up the inflation fight.

Mortgage rates won't fall just because of this
This cut might help in the long run, but 30-year mortgage rates don't follow the Fed's moves directly. They respond more to the outlook of what the Fed says it will do next. For now, rates are hovering in the low 6% range, near the lowest they've been all year.

Variable rate loans and HELOCs? Expect a small break
If you have a HELOC or a loan tied to the prime rate, this cut could lower your monthly payment slightly. But it won't make a huge dent, we're talking tenths of a percent, not thousands of dollars saved.

Savings accounts and CDs? Time to shop around
Banks will likely start lowering interest on high yield savings and CDs in the coming weeks. If you're sitting on cash, this is a good time to compare rates and make sure your money is still working for you.

Real estate prices aren't likely to drop
Even if rates inch down, don't expect a big shift in home prices. Inventory is still low in Pembroke Pines, and demand is steady. If you've been waiting for prices to fall, you could be waiting a long time and if rates fall later, that just means more buyers will re enter the market.

The Fed's rate cut is a step in the right direction for borrowers, especially those with adjustable rate loans but it's not a magic bullet for the housing market. If you're house hunting, the good news is:

If you're a saver, this is your cue to check your accounts and make sure your interest rates haven't quietly dropped.

Want the full story?
👉 Read the full Wallstreet Journal article here

Questions about timing your next move or how rates affect your buying power? Let's talk strategy.