The Federal Reserve is meeting tomorrow, and while another pause is expected, many economists believe a rate cut could be on the horizon. For Utah homebuyers, even a small drop in interest rates — say, just 0.25% — can have a big impact on what you can afford.

Let me break it down.

📉 How a 0.25% Drop Affects Your Buying Power

Most people assume small shifts in mortgage rates don’t matter much. But the truth is, a 0.25% decrease can increase your buying power by $15,000 to $20,000 — or more — depending on your price point.

For example:

• At 7.00%, a $3,000 monthly budget qualifies you for roughly a $450K loan
• At 6.75%, that same budget could get you closer to $470K–$475K

That’s a meaningful difference — whether it’s upgrading to a better neighborhood, adding that extra bedroom, or simply enjoying a lower monthly payment.

🏠 What This Means for Buyers in South Jordan, Daybreak, and Beyond

Here along the Wasatch Front — especially in master-planned communities like Daybreak in South Jordan — inventory is improving. Builders are offering incentives, and competition hasn’t fully returned (yet). That creates a unique window of opportunity.

If rates drop in the coming months, we can expect buyer demand to ramp up fast. More demand = more competition = higher home prices. Getting pre-approved now locks in your opportunity to act ahead of the curve.

💬 What Should You Do?

Whether you’re just starting to look or you’ve been sitting on the sidelines waiting for rates to drop, now is the time to explore your options. Even if rates don’t move tomorrow, preparing now means you’re ready when they do.

As a full-time Realtor based in South Jordan who specializes in Daybreak real estate and the greater Salt Lake Valley, I can help you run the numbers and build a personalized game plan — no pressure, just real strategy.

📲 Let’s connect today and see how much house you can actually afford.