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Consumers Weigh in On Fed Rate Cuts and Mortgages

first_img Share Save Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago  Print This Post Servicers Navigate the Post-Pandemic World 2 days ago Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Previous: The Risks of Real Estate Fraud Next: Americans React to Affordability Issues Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. Home / Daily Dose / Consumers Weigh in On Fed Rate Cuts and Mortgages About Author: Seth Welborncenter_img The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago Sign up for DS News Daily debt Fed Interest mortgage Rates 2019-09-11 Seth Welborn The Best Markets For Residential Property Investors 2 days ago September 11, 2019 1,223 Views in Daily Dose, Featured, Market Studies, News Consumers Weigh in On Fed Rate Cuts and Mortgages Tagged with: debt Fed Interest mortgage Rates Data Provider Black Knight to Acquire Top of Mind 2 days ago A second Fed rate cut is likely, with research indicating there is a 91% chance of the Fed reducing its target interest rate by 25 basis points in September 2019.  In response, WalletHub conducted a survey of consumers to determine how they feel rate cuts can impact their lives and their debt. According to WalletHub, if recent rate hikes are any indication, we won’t see much of a change following a September rate cut, as the mortgage markets have already accounted for the move. However, that is not to say Fed rate changes don’t make mortgages more or less expensive for new borrowers. WalletHub’s analysts estimate that this rate cut has already decreased the cost of new mortgages by around 10 basis points.WalletHub’s survey revealed that 68% of people say the interest rates on their loans are currently too high, while 72% of people say it’s good for their own wallet when the Federal Reserve cuts interest rates. Additionally, 56% of people say it’s good for the economy when the Federal Reserve cuts interest rates.According to another study from Bankrate, 67% of economists believe the Fed will make two or more cuts, while 14% predicted one more. Additionally, another 10 percent predict rate cuts as well as the return of quantitative easing.The likelihood of more rate cuts is due in part to a deteriorating economic outlook. Ninety percent of economists in Bankrate’s survey said that the risks to the outlook were tilted toward the downside, up from 80 percent in the second quarter.“The question we keep asking ourselves is, how many more blows can this aging business cycle take?” Bernard Baumohl, Chief Global Economist at the Economic Outlook Group told Bankrate. “We expect the economy will barely avoid a recession next year, and the consumer should get credit for that. But the escalating trade dispute, along with the havoc it has caused to supply chains and how it dampened economic growth worldwide will all be with us — at least until 2021.” Subscribelast_img read more