Fed Drops Interest Rates for the First Time Since 2008

By: Beth Gillem
On Behalf of Method Mortgage
| August 13, 2019 |

Do you remember watching Iron Man in theaters when it was released back in 2008? If so, you probably enjoyed The Avengers: EndGame that hit box-offices this past April. Both 2008 and 2019 hold historic cinematic events for Marvel fans. Both 2008 and 2019 also share another historic event for everyone, whether a Marvel fan or not.  Just two weeks ago, the Federal Reserve Bank lowered interest rates for the first time since 2008. Yes, it has been 11 years since the last reduction!

Why Did Rates Drop?

Why the long stretch since the last rate drop? Simple answer: our economy has been steady and good. Interest rates typically hover around 4%. In 2008, our economy was struggling to say the least. Rates were dropped in a last-ditch effort to re-stimulate our businesses. Sadly, it was too late, and our Recession hit. Slowly and for many painfully, the economy came back as did interest rates.

Analysts now see the worth in being proactive this time around and want to keep this stretch of economic success stable as long as possible thus the 2019 announcement of the drop in rates. Lower interest rates on mortgages encourage more new homes to be purchased which boosts consumerism all around.

What This Means for You

Mortgage interest rates will go back up eventually due to changes in tax cuts and other economic policies as they usually do, but right now with rates as low as 2.25% for qualifying home buyers, this is when you want to lock in your rate. If you are ready to make the move from renting to owning there is no better time.

Are you looking for a little more room to breathe and ready to expand your square footage? Lower rates will also help your home sell quickly so you can get into a larger home on a faster timeline.  Finding your “forever home” is always a great feeling and locking it in at these interest rates gets you the most bang for your buck.

Method Mortgage is here to help you find the right mortgage for you at the best rate for you. Reach out and let us help you take advantage of this historic event while saving you money on your new home.

This post was originally shared here by Roger Steur for Method Mortgage. We are always looking for quality content to share here at the Dogwood Journal. If you have something you would like shared please visit our submissions page.

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Share on linkedin
LinkedIn

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts

The Journal
The Dogwood Journal is an online magazine produced by Dogwood Media Solutions based out of Montgomery, Alabama.

FOLLOW @DOGWDJOURNAL

HOP ON THE LIST

Don't miss out on a single story!
An online publication of Dogwood Media Solutions, LLC.

Socialize with us

All Rights Reserved | Made with ❤ by Dogwood

on instagram

The Newsletter

Be the first to know about

our latest articles

Subscribe to receive a notification every time we release a new article.