Who was Lt. Kendrick Lamont Key Jr? Remains of US soldier who fell off cliff in Morocco found in oceanLt. Kendrick Lamont Key Jr., an Air Defense Artillery officer, was found dead after going missing during the African Lion military exercise in Morocco. Published on: May 11
A body found in New South Wales is thought to be that of a man wanted over the murder of three people in a small Australian town in January. Julian Ingram was on bail for domestic violence offences at the time of the killings of his pregnant ex-partner Sophie Quinn
Tamil Nadu Chief Minister C Joseph Vijay visited former Chief Minister MK Stalin at his residence. This meeting occurs days before the government faces a crucial floor test in the Assembly. Vijay also met MDMK founder Vaiko. The visit follows recent sharp criticism from Vijay regarding the state's
A new rural employment law, the VB-G RAM G Act, will replace MGNREGA on July 1. The government states it offers 125 days of guaranteed wage employment and aims for rural transformation. The Congress party criticizes the move, calling it an exercise in centralisation
Barcelona turned the Clasico into a coronation on Sunday (May 10, 2026), swatting aside Real Madrid 2-0 at a roaring Camp Nou to claim their 29th LaLiga title. Hansi Flick’s side moved to an unassailable 91 points, 14 clear of second-placed Real with three games remaining
Could the US interest rate cut boost the housing market?
Could the US interest rate cut boost the housing market?
Aileen Barrameda is planning to buy a house in Los Angeles in the coming months. Stubbornly high mortgage rates - twice what she locked in at the start of the coronavirus pandemic - are not putting her off.
"If I have the means to get in the market, I might as well get in now, because homes are just going to get more expensive," Aileen said.
The cost of housing is a key concern among Americans and a political talking point. US President Donald Trump had raised hopes that interest rate cuts from the Fed would help Americans get mortgages.
The average rate on the 30-year mortgage, the most popular home loan in the US, fell to 6.35% last week, according to Freddie Mac. This marked the largest weekly decline in the past year and the lowest level in 11 months.
However, for buyers like Aileen, borrowing costs are not guaranteed to come down much more than they already have despite the Federal Reserve's interest rate cut on Wednesday.
The Federal Reserve's interest rate decisions do not directly affect mortgage rates. But they do affect what banks charge each other to borrow money.
That then influences what banks charge their own customers for loans such as mortgages as well as the interest rate they pay on savings.
However, US banks had already cut mortgage rates in anticipation of the Fed rate cut that happened this week, meaning mortgage rates may not fall much further. Prospective home buyers waiting for substantially more easing might be disappointed.
Fed chair Jerome Powell, speaking to journalists on Wednesday, said as much.
"Most analysts think it would have to be pretty big change in rates to matter a lot for the housing sector," he said, while acknowledging that lower interest rates might boost demand and help builders.
Meanwhile, the risk of rising inflation could push mortgage rates up if banks anticipate this means the Fed will not cut rates any further any time soon. The Fed and other central banks tend to avoid cutting borrowing costs up if they feel inflation is too high.
"I do think that people are expecting a big impact from this," said Nicole Stewart, a real estate agent with Redfin in Boise, Idaho, referring to the Fed's rate cut this week.
I've been trying to inform most of my buyers, as well as my sellers, that we've already seen the majority of what's going to happen.
Ms Stewart said a fall in mortgage rates over the past month has encouraged some buyers. Over the span of just one weekend earlier this month, Ms Stewart wrote four offers and put three deals under contract.
"A huge increase from anything in past few years", she said.
But the US housing market remains unaffordable for many people. That issue is unlikely to be resolved by future Fed decisions, or by the recent dip in mortgage rates.
Many homeowners secured unusually low mortgage rates - in the 3% range - at the height of the coronavirus pandemic, which they are hesitant to give up by selling their home. As such, homeowners who might otherwise downsize are choosing to stay put, reducing the amount of housing available for purchase and driving up home prices.
Roughly 80% of mortgage borrowers have locked in a rate below the current average of 6.35%, said Julia Fonseca, an associate finance professor at the University of Illinois Urbana-Champaign.
While every decline in mortgage rates helps loosen the market a little bit, there are no signs of substantial relief on the horizon, Ms Fonseca said.
"We might be still a long way from normalising these markets," she said.
Kristin Carlson, a prospective first-time buyer in the Boise area, has been scoping out the market for four years, while renting in the meantime.
For Kristin, easing mortgage rates in recent weeks means she is "just that much closer to pulling the trigger". She said she is eager to purchase soon, to get ahead of a possible scenario in which rates fall substantially further, spurring more competition.
Borrowing costs are factoring into Ms Carlson's thinking when it comes to the type of home that is feasible for her to purchase - the neighbourhood, the size, the quality of the builder.
Still, mortgage rates are taking a backseat to other considerations, including seasonality and finding a home that is the right fit for her needs.
Modestly lower mortgage rates are offering some relief and spurring activity among buyers, said Matt Vernon, the head of consumer lending at Bank of America. But bigger picture, the dip is not set to be enough to fix a housing market under strain.
"There's cautious optimism that we're headed in the right direction," Mr Vernon said.
I don't think it's necessarily changed buyers' perception of the challenges in the market, but it's certainly got their attention.
Source: BBC
Related Posts: Los Angeles fires US District Judge blocks Trump from withholding funds from Los Angeles 70-Year-Old Sikh Man Brutally Beaten With Golf Club Near Los Angeles Gurdwara Anthony Davis was disrespected in Los Angeles Step inside massive Los Angeles villa where BTS lived while making Arirang Ramayana teaser first glimpse debuts in Los Angeles U.S. judge blocks Trump's National Guard deployment in Los Angeles Big warning of Los Angeles-style wildfires in Australia Kim Kardashian speaks up against ‘inhumane’ ICE raids in Los Angeles
Google has settled with Black employees who alleged systemic racial disparities in hiring, pay, and advancement in a lawsuit filed in 2022. April Curley, a former Google employee, had sued the tech giant for racial discrimination, saying it engages in a “pattern and practice” of unfair
1 days ago
It’s safe to say Max Verstappen’s latest racing adventure has taken the motorsport world by storm. The four-time F1 World Champion is set to compete in the iconic 24 Hours of Nurburgring later this month — and the hype surrounding his appearance has already pushed the event to a complete
1 days ago
Beijing has confirmed that US President Donald Trump will travel to China this week to meet Xi Jinping. The visit, from 13-15 May, will be the first to China by a US president in nearly a decade - and comes at a pivotal moment for ties between the world's two largest economies
1 days ago
With rising temperatures in numerous cities of India, air conditioners have emerged once again as one of the biggest categories at the ongoing Amazon Great Summer Sale on day 4 for buyers. Several brands are offering attractive deals on inverter split ACs, smart and Wi-Fi enabled units
1 days ago
Kyle Busch update: Why did NASCAR star seek medical attention after Watkins Glen Cup Series race? Concerns pour inKyle Busch requested medical assistance during the Go Bowling at The Glen while racing in the top five. Published on: May 11, 2026 4:33 PM IST By Shweta Kukreti Share via Copy link
1 days ago
Prime Minister Narendra Modi’s appeal to citizens to cut fuel consumption, avoid gold purchases and adopt other measures to help the country withstand global economic uncertainties amid the West Asia conflict were “proofs of failure”, Congress leader Rahul Gandhi said on Monday
1 days ago
If you opened X (formerly Twitter) today, you likely saw a name topping the charts that isn’t a politician, a cricketer, or a movie star. Instead, India is currently obsessed with two people most of the internet didn’t know yesterday: Mohan and Pooja.If you opened X (formerly Twitter) today
1 days ago
A French woman and two Americans tested positive or showed symptoms of hantavirus on Monday (May 11, 2026) as nations around the world scrambled to repatriate passengers from a cruise ship hit by an outbreak and quarantine or isolate them. Passengers from the ship began flying home aboard military
1 days ago
Isabella Stroupe GoFundMe: Family speaks out after North Carolina teen tortured, killed by BF, ‘Just like a nightmare…’A GoFundMe has been launched for Isabella Alexandria Stroupe, a 19-year-old who was found dead inside a North Carolina home. Her boyfriend has been arrested
1 days ago
P6, fastest lap: Racing prodigy Atiqa Mir makes big impact on 'dream' FIA Karting debutP6, fastest lap: Racing prodigy Atiqa Mir makes big impact on 'dream' FIA Karting debut Published on: May 11, 2026 3:38 PM IST PTI Share via Copy link Valencia
1 days ago
After taking oath as West Bengal Chief Minister on May 9, 2026, Suvendu Adhikari chaired his first Cabinet meeting on Monday (May 11, 2026) and said his government has granted transfer of land to the BSF for erecting a fence along the Bangladesh border and approved immediate implementation of the
1 days ago
Constantly multitasking and exhausted? Therapist reveals 5 practices for mothers to prevent burnoutMothers often ignore their mental health, which gradually builds up and causes burnout. Know how to protect maternal mental well-being. Published on: May 11
1 days ago
When tech companies are firing employees at an accelerating pace and AI eating away those jobs that have until now been done by humans only, Nvidia founder Jensen Huang has tried to play down doomsday fears of youngsters by saying that ‘it’s the ideal time to enter the workforce’
1 days ago
Daily essential products such as soaps, detergents, biscuits, packaged foods, and beverages are expected to get costlier as leading FMCG companies are preparing for calibrated price hikes on account of rising crude-linked inflation, higher packaging costs
1 days ago
CBSE (Central Bureau of Secondary Education) results for Class 12 2026 are being eagerly awaited by millions of students across the country. Approximately 18 lakh students are reported to have appeared for the exam in the 2026 academic session across Science
1 days ago
Editorial independence is core to our work. Some links may earn us a commission, without influencing our opinions.10 vacuum cleaners that let you clean your entire home without breaking a sweatDiscover 10 vacuum cleaners with strong suction, wet and dry cleaning
1 days ago
Moments after Austria overtook Israel to win last May's Eurovision Song Contest and in doing so won the right to host this year's event, UK viewers heard commentator Graham Norton say organisers "will be breathing the largest sigh of relief that they're not faced with a Tel Aviv final next year"
1 days ago
West Bengal Chief Minister Suvendu Adhikari said on Monday that his government, in its first Cabinet meeting, gave its nod for land to be transferred to the Border Security Force to erect a fence along the border with Bangladesh, PTI reported
1 days ago
Telangana Chief Minister A Revanth Reddy on Monday directed the state police chief to investigate a Protection of Children from Sexual Offences Act case filed against Bandi Bhagirath, the son of Union minister Bandi Sanjay Kumar. The chief minister “questioned” Director General of Police CV
1 days ago
As AI reshapes hiring and workforce expectations, colleges are entering a new competitive landscape where rankings alone are no longer enough. Institutions are increasingly being judged on employability, technological relevance, industry alignment, and future readiness
1 days ago
The Indian stock market fell about 1.5% on Monday amid higher global oil prices and concerns about the economic impact of the conflict in West Asia on India’s economy. The benchmark Sensex had fallen more than 1,300 points, or nearly 1.7%, at the end of the session
1 days ago
Pune to have India’s first Low Emission Zone, tourist hotspots to followIn a first for an Indian city, Pune will institutionalise a low-emission zone (LEZ) in its most polluted area, Shivajinagar in the central business district, potentially creating a template for other Indian cities
1 days ago
It’s safe to say Marcus Rashford is enjoying life in Catalonia. After arriving at Barcelona on loan from Manchester United, the England forward has rediscovered both his confidence and his spark under Hansi Flick. But on Sunday night, Rashford delivered his biggest moment yet on the grandest
1 days ago
The New Age Aspirant: Competitive exams, content, and confusionAspirants have easier access to lectures, test series than ever before. Information is no longer scarce, and that has quietly changed the way students prepare. Published on: May 11
1 days ago
Dehradun YouTuber Himadri Patel shares no 1 tip for negotiating brand deals and 1 mistake costing content creators moneyHimadri Patel says that the secret to a sustainable income isn't just about high views — it’s about treating your brand like a business from day one. Published on: May 11
1 days ago
Amitabh Bachchan asks his security to behave well with fans who come to meet outside Jalsa: ‘Janta janardhan hoti hai’Amitabh Bachchan has kept the tradition of meeting fans outside his Mumbai bungalow, Jalsa, for many years now. May 11, 2026
1 days ago
Watch: Bengaluru IT couple swims from Sri Lanka to India in 11 hours, internet calls them 'Legends'The clip showed the pair battling rough waves, strong currents and changing winds throughout the journey. Published on: May 11, 2026 4:16 PM IST By Bhavya Sukheja Share via Copy link For most people
1 days ago
