Navigating the Waves:
How the Fed's 2024 Interest Rate Cuts Impact Consumers and Mortgages

January 17, 2024

In the ever-changing landscape of the financial world, one constant remains: the Federal Reserve's influence on interest rates. Recently, the Fed made waves with its signal that interest rates may be cut three times in 2024. So, what does this news mean for homebuyers? The short answer is that while the Fed doesn’t set mortgage rates, a Fed interest rate cut will affect the 10-Year Treasury yield direction which stimulates the mortgage origination market, lowering the cost of borrowing for some consumers to refinance a home with a fixed-rate mortgage or receive home equity lines of credit (HELOCs), often considered a second mortgage.

No matter how potential cuts to interest rates play out, Ridgewood Savings Bank helps homebuyers find affordable mortgage options every day. And, as a true community bank, we are committed to helping our neighbors reach their financial goals, as we are not in the business of saying ‘no’ to a customer if we can find a way to say ‘yes.’

In this blog, we explore the opportunities we offer homebuyers to save you money and increase your purchasing power. First and foremost, we encourage you to contact a Ridgewood mortgage consultant or call 866-RSB-4111 (866-772-4111) to learn more about our homebuying resources and affordable mortgage options available.

Helping low- and middle-income individuals

Ridgewood works with many community nonprofit organizations along with the New York Mortgage Coalition (NYMC) to help individuals prepare for homeownership, providing a wide range of programs and incentives to eligible first-time home buyers. Additionally, as an approved SONYMA lender, we can assist with a broad selection of low-interest rate programs.

Good Move Plus helps eligible low-to-moderate-income (LMI) New Yorkers qualify for a mortgage and provide financial assistance to cover some of the upfront costs. The product removes some of the hurdles to home ownership for families and individuals who have the income but need a little extra support. Good Move Plus, unlike other affordable mortgages, is not just limited to first-time homebuyers. The program is open to any individual interested in purchasing or refinancing a single-family up to a four-family home, condominium, or co-op, if the borrower meets eligibility requirements.

Our Good Move Mortgage offers unique benefits for individuals and families whose income exceeds the median income typically necessary to qualify, making Ridgewood Savings Bank one of the few lenders helping borrowers secure low down payment mortgages along with grants and subsidies.

As a proud member of the Federal Home Loan Bank, Ridgewood is able to offer the Homebuyer Dream Program, which provides qualified borrowers up to $19,500 towards the purchase of their first home. The Homebuyer Dream Program provides funds in the form of a grant used for down payment and closing cost assistance.

As the Federal Reserve's signal that it will cut interest rates three times in 2024 unfolds, the impact on consumers and the mortgage market is significant.

With our array of mortgage products, Ridgewood Savings Bank stands ready to assist customers in navigating these changes effectively. Whether you are a first-time homebuyer or considering refinancing, Ridgewood's commitment to community support and personalized financial guidance makes it a trusted partner on your homeownership journey. Call one of our mortgage experts at 866-RSB-4111 (866-772-4111) to learn how we can help.