Some Sacramento residents on the housing hunt have hope after the Federal Reserve cut its benchmark interest rate for the first time in nine months.
With the Federal Reserve cutting interest rates by a quarter of a percent, it could also lead to lower mortgage rates.
Michael and Sandra Omogun are on a housing hunt.
“I’m looking for just a nice home for a big family,” Sandra said. “And a big back yard.”
“We’ve been looking for like two years now and all the home prices are just so high that we can’t afford it,” Michael said.
The Sacramento couple says so far, they have not found the right price.
“It’s crazy,” Michael said.
Now, a Federal Reserve interest rate cut could help reduce monthly mortgage payments.
“The rate is a very big thing, so for the rate to drop down just a little bit is good,” Michele said. “It’s good for buyers so, yeah, we just hope it keeps dropping.”
Ryan Lundquist is a Sacramento real estate analyst and appraiser.
“Predicting mortage rates is one of the most challenging things,” Lundquist said. “For three years in a row, everyone and their mom has been talking about ‘rates are going to drop, rates are going to drop,’ and you know, are we at that moment finally? You know, maybe so. Only time will tell.”
Lundquist calls the Sacramento housing market dismal, with the fewest homes selling since the housing crash in 2007.
When homes do hit the market, the buyers are not biting fast.
The median number of days on the market in Sacramento, Stockton, and Modesto is 51, 50, and 48 days, respectively.
“And so the housing market feels really broken with sellers holding back,” Lundquist said.
Now, could a rate cut be the key to a turnaround?
“Is this the time to make the move?” CBS13’s Steve Large asked.
“I’d say for buyers, I mean, look at your lifestyle and finances and when is that colliding with the housing market,” Lundquist said.
Michael and Sandra hope it helps them open the door to homeownership.
Besides the rate cut on Wednesday, the Federal Reserve is forecasting several more rate cuts through the end of the year that should make borrowing less expensive.
