Virtually all lending rates will change (tomorrow morning/today) after the Fed made a half-point cut to head-off an economic recession.
Bankers in local community institutions say the sub-prime lending trouble and foreclosure numbers that spurred the cut haven’t had quite the impact here as in other parts of the country. But Bank of Nashville president Hunter Atkins says the city will still reap any benefits of the cut.
“You know, in a city like Nashville where we have so much building and so much mortgages and so many home equity lines and a booming housing market, I think the last 12 months has given everyone time to pause and reflect to see, how stable is it? And then you get a piece of good news like this and it kind of bolsters everybody’s confidence.”
The number of houses sold has slowed down though home prices have continued to rise. Nashville bankers say construction lending may get an added boost with a backlog of projects that have been awaiting financing.
Prime lending rates will go down but so will rates for savings accounts. Atkins says consumers will be less likely to keep there money sitting in a low-interest account but adds that they’re also more likely to tap into a line of credit.