This is significant for anyone with a variable mortgage or if you are considering purchasing a home. Concerns about the economy and inflation moving in the right direction are encouraging the cuts. We expect this to stimulate the fall market and anticipate 2 further rate cuts by the end of the year.
What this means for you:
For Current Homeowners with Variable Rates:
Lower Monthly Payments: If you have a variable-rate mortgage, you can expect your monthly payments to decrease. This reduction will provide some financial relief and potentially free up extra funds for other needs.
For Homeowners with Fixed Rates:
Future Savings: If your current mortgage is locked in at a higher rate, this might be a great time to consider refinancing to take advantage of the lower rates. We can help you evaluate whether this option makes sense for your situation.
For Potential Homebuyers:
Better Opportunities: If you’ve been waiting for rates to drop before buying a home, now is an excellent time to start exploring your options. Lower rates mean more affordable monthly payments, making it easier to qualify for a mortgage and buy your dream home.
Year-Over-Year Comparison Example:
The monthly cost of a $500,000 variable-rate mortgage decreased significantly between August 2023 and August 2024, dropping from approximately $2,998 to $2,684. This represents a savings of approximately $314 per month compared to August 2023.
Over the course of a year, this would translate to a total savings of about $3,768.00, offering some financial relief to households carrying variable-rate mortgages.
The Larose Team is here to assist you in navigating the markets and ensuring you make the best financial decision for you and your family. If you have any questions or would like to discuss how this rate cut impacts you, please reach out to us.
