Local Real Estate Market Expected To See Boost After Federal Reserve Interest Rate Cut

The Federal Reserve cut interest rates Wednesday for the first time in four years.

The half percent drop is expected to lower prices on everything from credit cards to home mortgages.

Green Country real estate agents believe it will be a boost to the housing market that is already good.

A loan officer and real estate agent said they’ve been preparing for a rate cut, and this means the real estate market is about to get busy.

“We’re going to see a little frenzy, but I don't predict it being the COVID frenzy.”

Rachel Close is a real estate agent with McGraw Realtors and said this interest rate cut has been a long time coming.

“I don't know if it'll be multiple offers, we may in some situations, but it will get buyers going again,” Close said. 

The rate cut is the first one in four years, and it in anticipation of this cut, mortgage rates were already going down.

“If we see half a point, we see added cuts and more bonus for the borrowers and that's awesome,” said Jeff Summers. 

Jeff Summers is a loan officer with CityScape Home Mortgage.

He said lower interest rates mean more people will be able to buy a home and it also means those holding off on selling because of the high rates could now put their place on the market.

“Those people will start coming back into the market and look to buy and sell homes, which is good for everybody,” he said.

Summers said the caveat is that eventually, home prices will start to increase due to more competition.

“Over the next 12-18 months, we'll see a slow decline in the rates, which will only help borrowers,” he said. 

Close said the market in Tulsa is already strong, and she thinks this cut will make things even busier.

“The number one word for Tulsa is our affordability,” she said. 

Loan officers recommend buyers get prequalified so they can start searching for new homes.

The Fed said it will likely continue to drop rates gradually into next year.