MCLENNAN COUNTY, Texas (KXXV) — The Federal Reserve recently cut interest rates for the first time in four years, meaning mortgage rates are coming down — lower mortgage rates have encouraged local home buyers to seek pre-approval for higher priced homes.
- For some local house hunters, that means it's time to start or restart the search for a new home
- The fed says it sees "no hurry" to cut rates in the future and would likely stick with quarter-percentage-point cuts moving forward
- Local broker Cameron Gomez reports increased client interest in buying and refinancing due to the rate cuts
- Homebuyer Pablo Negrete is optimistic about finding a larger home for his family thanks to the lower rates
BROADCAST TRANSCRIPT:
Pablo Negrete has been searching for a new house for his family for the past five months.
"It's definitely exciting, because we are wanting a bigger house," Negrete said.
He says following the birth of their daughter last year, it's time for a bigger home.
"Mortgage rates are dropping, so that makes me get approved for something bigger, maybe give my wife the house that she's dreamed about," he said.
Last month, the Federal Reserve slashed interest rates by a half point, the first interest rate cut since 2020.
With lower rates, Negrete says he can hopefully find his wife her dream home.
"She's always dreamed about having a brick home, a big home and driveway — right now we kind of live in the country," he said.
"She loves it and we have no neighbors, but giving her a brick home with more land is definitely making one of her dreams come true."
Local broker Cameron Gomez says his clients, including buyers and sellers, are happy about the rate cuts.
He says a lot of clients, like Negrete, reached out again to get pre-approved with the new rate.
"It's allowing them to be approved for homes they wouldn't have been approved for before, whether that be just $5,000, $10,000, or $15,000 more than their normal approval range — that goes far in our industry," Gomez said.
He recommends buyers take advantage of the rate cuts and the larger stock of inventory, and says this is a great opportunity for sellers to look at refinancing options.
"Home sellers who bought maybe a year to 18 months ago when they had a higher rate, this is a great opportunity for them to refinance," Gomez said.
