Knoxville (WVLT) It's a break for borrowers.
And it was double the cut of what many were thinking.
Yesterday's anticipated quarter percent drop in interest rates ended up being slashed by a half-percent.
What does that mean for builders and buyers?
More importantly, for those who are trying to sell their home or lower a mortgage payment.
Volunteer TV's Jim Freeman takes a look.
It will affect everyone... In a good way.
Whether you're building, buying, selling or refinancing, falling interest rates eventually affect all of us.
Some sooner than others.
Judy Teasley, a real estate broker says, "today, it's mostly impacting developers. Their rates are connected to the prime. I know one developer whose construction loan went down $2,500 dollars yesterday."
A carry forward affect is also expected.
Gary Duncan, a developer says, "Knoxville's market's been strong this year for us. So, I think it will continue and insures that we'll have a better fall, winter, and spring market."
For those looking to sell, it offers renewed hope.
Dr. Robert Sterling's house is on the market and says, "when we put our feelers out that our house was going on the market, everybody said oooooh, because everything's at a stand still. So, we're hoping that will help."
The interest rate drop could be likened to that of a win for the Vols.
Teasley continues, "it's like when UT wins a football game. The mood of the people and how people feel and they feel positive and excited."
Dr. Sterling's also looking to buy.
But what about homeowners looking to refinance?
Mike Simmons, a loan officer says, "it probably always pays to take a look at refinancing although rates, while, they're good, I don't know if they're good enough to go through the refinancing process. You tend to have closing costs again."
One realtor told us that it may take a couple of months for the rate cut affect to trickle through the entire market.
But as it does, it's touching everything.
Teasly says, "that's when people go out and decide I'm going to get what I want. I can sell what I want. It puts everybody in a great mood and that absolutely affects everything."
Judy adds that with all the problems other parts of the country's housing markets have been having, Knoxville's been excellent.
And the last time the feds cut rates, late June 2003.