What did the Fed do with interest rates July 31, 2024?

The Federal Reserve kept interest rates steady again, with claims that a rate cut could potentially come as soon as September.

The Fed Chair, Jerome Powell, said that if inflation continues to fall, he expects they could cut interest rates when they next meet September 17-18, 2024.

I have mentioned before that mortgage loan interest rates have multiple different criteria for their percentage, and there may not be a noticeable change right off the bat because the financial markets generally adjust in advance based on the assumption the rate cut will happen. That being said, it does have some effect, and over time, it should reduce mortgage costs for new mortgages.

Inflation has fallen to 2.5% in July, which a huge drop from the 7.1% it hit when it peaked in 2022. The Fed’s goal is for inflation to get to 2%.

If you are thinking about buying a home in Timonium, please contact me. I would be happy to connect you with a local trusted mortgage professional who can help to guide you through your mortgage options as your buy your new Baltimore home with me.