Interest rate cut may be felt in Utah immediately

ST. GEORGE, Utah — The Federal Reserve cut interest rates by a quarter point Thursday, but what does that mean for consumers? Especially those looking to buy a home in the growing Utah market. Fox 13 News reporter Chris Reed talked to an expert.

“Anytime the rates go down, that certainly gives an edge in regards to people looking to buy a home as that affects the monthly payments and what you can afford based off your income,” said Mindy Estok, the senior vice president of real estate lending for Chartway Credit Union.

Estok is reacting to Thursday’s news that for the second time this year, the Federal Reserve has cut its benchmark rate. That makes it cheaper to borrow money in the form of loans for things like mortgages, cars, credit cards and other big items.

As far as those looking to buy a home, the effect may be seen immediately.

“Actually we should start to see that by tomorrow,” she said.

But lower rates or not, Estok says there is still one overriding issue, especially in places like Southern Utah.

“There is certainly a lack of inventory out there and that's what actually everybody is facing,” she said. “Of course the demand to buy homes is very high too. So there's definitely some challenges home buyers are facing right now.”

While reducing the rate, the Fed said it may be the last reduction for a while with uncertainty surrounding the financial policies of a new presidential administration and fears inflation might be coming back.

But Estok said that doesn’t mean people looking to buy a home should wait.

“You know, what they say is marry the home, but date the rates,” Estok said. “And so it's always a good time if you're looking for it. And, you know, there's always that option later on, you know, to refinance if you need to. So, if you find the home of your dreams and you know that's the one you want, definitely wouldn't wait.”