Real estate
BY CARSON WEAVER
Houston industries could see impact after interest rate cut it easier to purchase a car, easier to purchase a home,” Jankowski said. “On the business side, it Federal funds rate
On Sept. 18, the Federal Reserve cut its federal funds rate—the amount it charges banks—to 5% from 5.5%. On Nov. 7 it was lowered again to the 4.5% to 4.75% range. Experts said the interest rate cut could bring down mortgage rates in Houston, while making things such as cars and homes easier to purchase. The background The cut was larger than the National Associa- tion of Home Builders projected in August. “Recent indicators suggest that economic activ- ity has continued to expand at a solid pace,” reads a Sept. 18 statement from the Federal Reserve. The details The rate cut might be the best news for interest rate-sensitive industries like real estate, said Pat- rick Jankowski, senior vice president of research at the Greater Houston Partnership. “When they lower interest rates, it should make
makes it easier to expand your business.” However, Jankowski said the effects of the Federal Market Open Committee’s decision—the entity that sets a target range for the federal funds rate—might not be felt for three to six months. Diving in deeper Matthew Reibenstein, president of the Greater Houston Builders Association, said the cut reduces mortgage rates, and the costs related to financing developments and home construction sites. Houston Association of Realtors Chair Thomas Mouton said there have been potential homebuy- ers who have opted to rent instead of purchasing. He said he hopes when those leases are up, they’ll look at getting back in the market. “They never were incentivized with the higher rates to go on and actually start looking or to upgrade their next home,” Mouton said.
The Federal Reserve cut its federal funds rate in September and again in November.
6%
5%
4%
3%
2%
1%
0
2022
2023
2024
NOTE: THE DATES ARE BASED ON WHEN THE FEDERAL OPEN MARKET COMMITTEE MET.
SOURCE: FEDERAL RESERVE SYSTEM/COMMUNITY IMPACT
$669,702 The Ardell
$494,069 The Mcavoy 10034 Starry Night Lane Manvel, TX 77578 2,681 sq. ft., 1 Story, 4 Bedrooms, 3 Full Baths, 3-car Garage
1771 South Pointe Drive Friendswood, TX 77546 3,132 sq. ft., 2 Story, 4 Bedrooms, 3 Full Baths, 3-car Garage
$385,000 The Brecken 9018 Caribou Court Manvel, TX 77578 2,146 sq. ft., 1 Story, 3 Bedrooms, 2 Full Baths, 2-car Garage
$395,000 The Woodworth 6018 Cottontail Lane Manvel, TX 77578 2,229 sq. ft., 1 Story, 4 Bedrooms, 3 Full Baths, 2-car Garage
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