The Federal Reserve is expected to lower interest rates by a quarter point on Wednesday, which will make land purchases easier and less expensive for developers, thus increasing the supply of single-family homes. Mortgage refinancing will also get a boost as people seek to lower their monthly mortgage payments.
According to Josh Migdal of the Miami-based law firm Mark Migdal and Hayden, “You will get a nice refinance pop because people who were borrowing a year ago at 4.5% and above are now likely able to obtain financing for between 3.5% and 3.75%.