The impact of the Fed rate cut on the Winston-Salem real estate market

The Federal Reserve cut interest rates by half a percentage point.

Here are some thoughts on how the rate drop will impact the Winston-Salem housing market.

Mortgage rates will drop, but not as much as you might think, because the cut was expected, so mortgage rates have already been dropping in anticipation of the rate cut.

Lower mortgage rates could actually mean higher housing prices, because lower rates could drive up demand.

Dropping interest rates could lead to more housing supply because it will reduce costs for home builders and developers. This could eventually help ease pricing pressure, but that would be longer on the time horizon.

The bottom line is that affordability will still be a big problem, because lower payments from lower rates will be offset by prices that will probably continue to rise.