Mortgage rates rise nationwide after federal funds rate drop

Evening. Thank you for joining us. I'm Heidi Alaga. The Federal Reserve cut interest rates Wednesday for the third time this year, but that might not be the best news. If you're buying a house are Midtown reporter Alex Dowd met with a real estate and financial experts to see how this could affect potential buyers in the area. Adrian Ramirez is searching for his first home. I want to grow my own roots. I also do see the value long term and home ownership, a move slightly complicated by a quarter point drop in the federal funds rate, which heavily influences but doesn't directly affect mortgage rates. Interest rates on mortgages went up because the Treasury market, which is what is mortgages are based on the 10 year went up because they're anticipating that they're not going to be able to cut interest rates anymore and that the market said, No, that's not right. We have inflation. Eventually you might have to raise rates. The Federal Reserve also predicting federal fund rates will only drop twice in 2025. Mortgage rates aren't the only thing affecting the local housing market. Realtor Bridget Baldwin has worked in Tucson real estate for 15 years. There's so many factors that go into why someone buys or sells their house, she says, though interest rates aren't everything. There's a section of the market of people that are holding on because they don't see anything else that they want. They can make a difference. They are sitting on a 3.25 interest rate from 2017. They'd have to give up that rate and enter the market at the current rate, which is between 6.5 to 7. Ramirez is looking in midtown Tucson, an area Baldwin says tends to favor the sellers area is more important to Ramirez than the loan he'll take out, so he's willing to make some changes. I'm sticking to the plan and working towards buying a house regardless of where the interest rates are. Instead of spending more on that fancy dinner, I could save that for my down payment in midtown near sixth and Country Club. Alex Dowd, K gun.