Kim Bass: Federal Interest Rates Cut Will Have Little Effect On Housing

Wednesday, August 7, 2019 - by Kim Bass, president, Greater Chattanooga Realtors
The Federal Reserve on Wednesday cut interest rates for the first time since the Great Recession of 2008, but the National Association of Realtors® don’t think it will have a huge impact on residential purchases… at least in the short term.  
 
In a recent discussion, Lawrence Yun, chief economist for the National Association of Realtors, said that the move is not likely to deliver significant juice to an already favorable borrowing environment for home buyers. The federal funds rate, which is what banks charge one another for short-term borrowing, will now hover between 2 percent and 2.25 percent, according to news reports. 
 
The Fed made the decision to lower interest rates to stave off the threat of an economic downturn.
But it's unlikely to translate into additional mortgage savings for many buyers. With the interest rate for a 30-year loan already hovering below 4 percent, the Fed’s move may be more meaningful for buyers with other types of financing, says Mr. Yun. “Many borrowers will benefit, especially those with adjustable-rate mortgages and commercial real estate loans,” Mr. Yun says. “The longer-term 30-year fixed-rate mortgages will see little change in the near future because they had already declined in anticipation of this latest move by the Fed. 
 
“These low interest rates will partly help with housing affordability over the short-term. Both rents and home prices have been consistently outpacing income growth. The only way to mitigate housing-cost challenges as a long-term solution is to bring more supply of both multifamily and single-family homes to the market," adds Mr. Yun.

Chattanooga Neighborhood Enterprise Hosts Ice Cream Social

Real Estate Transfers For July 31-Aug. 7

Kim Bass: Federal Interest Rates Cut Will Have Little Effect On Housing


Chattanooga Neighborhood Enterprise will be hosting a free Homebuyer Ice Cream Social on Tuesday, Aug. 27 from 5-7 p.m. at The Camp House on MLK. The Homebuyer Ice Cream Social will be an opportunity ... (click for more)

NOTICE: The Hamilton County Register’s Office did not publish this data. All information in the Register’s Office is public information as set out in T.C.A. 10-7-503. For questions regarding ... (click for more)

The Federal Reserve on Wednesday cut interest rates for the first time since the Great Recession of 2008, but the National Association of Realtors® don’t think it will have a huge impact on residential ... (click for more)


Real Estate

Chattanooga Neighborhood Enterprise Hosts Ice Cream Social

Chattanooga Neighborhood Enterprise will be hosting a free Homebuyer Ice Cream Social on Tuesday, Aug. 27 from 5-7 p.m. at The Camp House on MLK. The Homebuyer Ice Cream Social will be an opportunity for those interested in buying their own home to ask questions and have discussion with CNE’s Mortgage Advisor and Homebuyer Counselors while enjoying a sweet treat. "The social ... (click for more)

Real Estate Transfers For July 31-Aug. 7

NOTICE: The Hamilton County Register’s Office did not publish this data. All information in the Register’s Office is public information as set out in T.C.A. 10-7-503. For questions regarding this report, please call Chattanoogan.com at 423 266-2325. GI numbers, listed when street addresses are not available, refer to the location of transactions (book number and page number) in ... (click for more)

Breaking News

Man, 44, Stabbed To Death On East Main Street

Chattanooga Police said a 44-year-old man died after being stabbed in the 1200 block of East Main Street around midnight Thursday. Upon arrival, officers located a man suffering from a stab wound. Hamilton County EMS responded and transported the victim to a local hospital. Officers secured the scene and called for the Violent Crimes Bureau to respond. Investigators ... (click for more)

Gary Cross, 23, Is 4th Suspect Arrested In Shooting Death Of Tracy Calloway On July 21

On Friday a fourth suspect, Gary Cross, 23, was arrested on outstanding warrants in relation to the July 21, 2019 shooting which occurred in the 4600 block of Trailwood Drive. The victim from that shooting, Tracy Calloway succumbed to injuries sustained from that shooting on July 22. The arrest of Cross is a result of an extensive investigation by the CPD Homicide Unit. ... (click for more)

Opinion

Good Sports Bar News

Just had dinner Tuesday night at Jonathan's Grille location in Hendersonville, Tn. When in Murfreesboro or Nashville, it's one of my favs. Just a great sports bar concept and menu. So happy to hear the Revelette brothers are bringing their brand (and their pizza night) to the old 212 Market location in downtown Chattanooga. Bring it on! Garry Mac (click for more)

Roy Exum: The Saturday Funnies

As I stood in the checkout line of the Walmart in Tiftonia this week, my newest friend named Harold asked me, “What’s the difference between an outlaw and an in-law. As I searched my mind, Harold responded, “Outlaws are wanted!” I immediately accepted his joke as a good omen. It helps me to remind readers of The Saturday Funnies, I just collect them during the week and pass them ... (click for more)