Rate cut won't significantly impact Tucson housing market

The Feds once again cut the key rate by a quarter percent on Wednesday to motivate the economy and help the country out of it's housing slump. The question on everyone's mind is "How will this impact me?" The answer, not much. Lower short term rates will lower interest rates on home equity loans and some credit cards, which is a positive for consumers. If short term rates are lower then fewer people are likely to default; a good thing when our nation is currently plagued with foreclosures. As a result consumers are likely to spend a little more during our upcoming holiday season because their confidence level is higher. It also means consumers will likely accumulate more debt on their credit cards. Tis the season!

Unfortunately the problems with the housing market won't be resolved with a simple interest cut because the issues are too deep. The after affect of the mortgage meltdown has resulted in stricter lending standards, leaving a lot of home buyers with no way to obtain a home loan. Even popular new home builders like Pulte and Lennar have tightened their standards and are struggling to make sales. A client of mine just received her second price reduction from her home builder, and her home will be complete in a week. Most Tucson home builders are offering incredible incentives to encourage buyers to purchase their homes.

With the Tucson housing market being as saturated as it is, sellers are negotiating their socks off. If you're a buyer looking for a retirement or vacation home, it's the perfect time to take advantage of Tucson's prices. And you can be in your home to enjoy a Tucson winter; sunny and 75 degrees!

To see how this rate cut can impact a home equity loan

For more info about the fed rate cut and it's impact on housing