Christian Osgood breaks down a 50-basis-point rate cut and what it means for real-estate investors. Refinancing becomes cheaper, but lower rates will push property prices higher due to limited supply. He says now is the time to act, especially for those using creative-finance strategies.
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Interest rates down 50 points. This is good news if you have any refinances coming up. If you're a creative finance person like me, you're trying to get in the game, no to low money down, this might actually not be good news for you. That means as rates come down, prices start to go up again. We still have a supply problem. Supply and demand with lower cost of capital, prices will start to go up. The best time to buy real estate was a couple years ago. Next best time to buy real estate is right now because we're going to continue to lower the rate. Get in as soon as you can. If you're starting little to no money, you got to learn how to play the game and you really got to get on it right now, this second. However, for the rest of us, this is great news. This means that our conventional debt and our options to refinance just got a lot better. They're going to continue to get better through the year.