Federal Reserve rate decision 5/1/2024
May 01, 2024
The Federal Reserve will be making its third rate decison of 2024, but the probability of a rate cut is unlikely.
About 97 percent of economists are predicting that the Fed will maintain current rates. Most expeerts are predicting that rates will not be cut until the November 2024 meeting, and then the cut is expected to be a quarter of a percentage point.
That means buyers will have to get used to average mortgage rates around 7% again. Credit card rates, which have reached record highs, wont be coming down either, so home buyers will have less buying power. Less buying power in a tight real estate market signals difficulty in normalizing the tight real estate market.
Who benefits? The good news is that savers are finding high interest savings accounts yeilding around 5%. People who dont carry credit card balances. Also home sellers who have enough cash to purchase a home before putting their home on the market.
