WHITELAND, Ind. (WISH) — The Federal Reserve on Wednesday cut interest rates for the first time since 2020 in a move meant to help consumers after years of hikes to reign in inflation.

Cutting the rate could end up helping Hoosiers save.

The benchmark interest rate now sits between 4.75% and 5%, a welcome change for homebuyers and owners looking to refinance.

Mike Wood, the founder of mortgage lender Bailey & Wood Financial Group, said of the Fed’s action, “It does affect the ability and the rates on the mortgage side, meaning that it is going to be flexible, going to see some relief in interest rates, lower those down over time.”

Wood says the rate cut was already expected after Federal Reserve Chair Jerome Powell signaled incoming cuts in August.

“Some of it’s already been, what we call, baked in, so a lot of the banks and lenders knew this was coming, so some of that was in preparation for today’s announcement. You still will see additional relief.”

For Hoosiers, the big question: Is it the right time to buy or refinance?

Wood says, if you have the money, now is the time.

“It should actually be a great time to buy or a great time to refinance because it’s providing some relief to borrowers. Obviously with everything, with the economic times, people need that relief. There is relief in there now that can lower some of those payments and opportunities for clients to save some money.”

Powell says more interest rate cuts could come by the end of 2024.

• Fed’s long-awaited rate cut collides with presidential politics