Louisiana housing demand to increase following announcement of upcoming low interest rates

BATON ROUGE, La. (WAFB) – After a challenging year for the housing market, more people are looking to buy their first home.

Following an announcement from the Federal Reserve, three interest rate cuts are coming this year.

“I think a lot of people predicted the market was going to crash and that didn’t happen. The median sales price again is still holding itself strong,” Richard Spears, owner/founder of Prime Properties said.

Real estate professionals blame inflation for low sales and high-interest rates.

According to Freddie Mac, a federal home loan mortgage corporation, mortgage rates alternated last year with the average 30-year fixed rate going as low as six percent in early February and as high as nearly eight percent in late October.

“There’s no denying that there was a slow market last year. Everybody that had the low-interest rates didn’t want to lose their low-interest rates so they either stayed out of the market or they were using their house as a rental rather than buying something new,” said Jonah Mumphrey, Broker at Pivot Realty.

Real estate professionals believe the news of decreasing rates alongside people who have been waiting to buy or sell a home will cause the housing market to make that shift.

As the interest rates trend down, real estate professionals encourage homebuyers to take advantage of those sales.

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