SUMMER SPECULATION HOW LOWERED INTEREST RATES WILL IMPACT YOU
When it comes to real estate, interest rates are a significant factor influencing the price and rate at which buyers purchase property. The higher the interest rate, the more money they’ll spend on interest rather than the principal. In their quest to curtail rampant inflation, the U.S. Federal Reserve, or Fed, has kept interest rates at a steady 5.25%–5.50% since July 2023. However, recent forecasts indicate that inflation is nearing the Fed’s 2% goal, which would incentivize them to lower the interest rates. In July 2024, one year since interest rates were hiked to their highest levels since 2006, strong indications suggest interest rates will fall again. If you are looking to buy or have recently purchased property, here is what to expect. WHAT WILL THE FED DO? Everyone is expecting interest rates to drop in the coming months. Philadelphia Fed President Patrick Harker told Reuters, “One rate cut would be appropriate by year’s end.” In June of
this year, the European Central Bank, or ECB, cut its benchmark rate from a record high of 4% to 3.75%. Their inflation rate is similar to ours, and their 2% annual inflation target is identical to the Fed’s. This is another strong indicator that the Fed will follow suit and cut interest rates soon. It could be a .25% cut or even a .50% cut, but it will have real ramifications for the real estate market. HOW DOES THIS AFFECT ME? If the Fed cuts rates this year, there are a few things to consider. One is
that the cost of financing homes lowers when rates are cut. There will be no immediate impact on fixed-rate mortgages, although adjustable- rate mortgage payments will decrease. If you are on a fixed-rate mortgage, you may want to call your loan officer. Refinancing your mortgage after the rates drop could help you save on your
monthly payments. Keep an eye on the interest rate, as a drop could be a boon for property owners. Given the tight inventory, lower rates could create even more competition among buyers. So, if you have your eye on a property, it may make sense to pull the trigger now and refinance down the road.
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Quinoa Veggie Bowl
This recipe is packed with protein-rich quinoa and a colorful array of vegetables. It’s ideal for a healthy lunch or a quick dinner!
Ingredients
• 2 tbsp olive oil • 1 red bell pepper, diced • 1 yellow bell pepper, diced • 1 cup diced zucchini
• 1 cup diced mushrooms • 1 tsp dried oregano • Salt and pepper, to taste • 2 cups cooked quinoa
directions
1. Heat olive oil in a large skillet over medium heat. 2. Add bell peppers, zucchini, and mushrooms and cook until softened, about 5 minutes. 3. Add oregano, salt, and pepper and stir to combine.
4. Add the cooked quinoa and mix thoroughly. 5. Cook for an additional 5 minutes, then serve.
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