Coastal Bend realtor explains what fed's rate cut means for homebuyers

CORPUS CHRISTI, Texas — The Federal Reserve cut interest rates for the first time this year last week, dropping them by about a quarter of a percent from 4% to 4.25%. While this could put more money in homebuyers' pockets, experts warn that lower rates may also drive up home prices. Coastal Bend realtor explains what fed's rate cut means for homebuyers

David Garcia, a Coastal Bend realtor and certified expert advisor, says the rate cut is positive news overall.

"In the big picture that's a good reduction overall. That eliminates some of the costs buying homes."

While mortgage rates aren't directly tied to Federal Reserve cuts, they do receive an indirect boost from the policy change.

"You're either going to save money monthly or buy a little bit more home because now your payment went