How will a Fed rate cut affect my mortgage rate, according to Vishal Garg?

Vishal Garg expects a quarter-point Fed rate cut to lower 30-year fixed mortgage rates to approximately 6.15%, potentially going even lower.

Can AI really save me money on my mortgage?

Yes, AI is projected to significantly reduce mortgage origination costs, with Better.com expecting to lower their costs from $3,000 to $1,000 per mortgage.

What is Vishal Garg's outlook for the US housing market in 2026?

Garg anticipates a housing market boom, with rates potentially dropping to 5% and increased refinancing activity due to AI-driven savings.

Home / Business and Economy / Vishal Garg: Savings Surge Ahead for Homeowners

Vishal Garg: Savings Surge Ahead for Homeowners

9 Dec

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Summary

A quarter-point Fed rate cut could lower 30-year fixed mortgage rates to 6.15%.
Savings from each quarter-point rate cut can reach $1,000 annually per household.
AI is projected to significantly reduce mortgage origination costs, boosting savings.

Vishal Garg: Savings Surge Ahead for Homeowners

Federal Reserve rate cuts are anticipated to significantly impact the housing market, potentially lowering 30-year fixed mortgage rates to around 6.15% or even lower, depending on the Fed's guidance. Each quarter-point reduction in rates could translate to substantial annual savings for homeowners, estimated at $1,000 per household, providing much-needed financial relief during periods of high inflation.

Vishal Garg, CEO of Better.com, highlights the transformative potential of AI in the mortgage industry. He projects that AI will drastically reduce the cost of originating a mortgage, from the current $15,000 for banks down to an estimated $1,000. These substantial savings are expected to be passed on to consumers, further enhancing their financial capacity.