CHARLOTTE, N.C. — The Federal Reserve's meeting on Wednesday is expected to come with an interest rate cut, the first since the Covid-19 pandemic.
"Inventory has been so low. Our market has remained super strong here with everything that's happened. Where we've seen changes in other markets, Charlotte has proven to kind of hold its value," said realtor Kate Terrigno with Corcoran’s South Park office.
While Charlotte's market grows, interest rates are stuck around 5.3%, the highest they have been in 23 years.
Wednesday's Fed meeting could change that. The question is: Will it be enough for Charlotte homebuyers to feel a difference?
"The hope is that interest rates will come down. I think what we don't know is what happens for the rest of the year and then after that," Terrigno said. "I think that is what people are kind of holding their breath to kind of see."
The Fed typically moves in 0.25% increments. However, current economic conditions could lead to a bigger cut of 0.5%.
Jeff Muth with Mecklenburg Mortgage expects the shift to be more standard
"I personally think they're probably going to do 25 and just kind of ease into it, versus jumping into 50," Muth said. "Maybe the next round, they'll go ahead and do 50."
No matter what, experts agree this will likely be the first of multiple rate cuts, meaning more competition.
"It might be better to get in now because it's only going to bring out more buyers, and the supply is still going to be the same," Muth said. "Know that you're probably going to be refinancing 12 or 15 months down the road and into a significantly lower rate."
The Fed's decision is expected at 2 p.m. Wednesday.