Every two weeks, FCNews seeks out flooring retailers across the country to offer their advice on hot topics of the day. This week, we asked: To what extent will lower interest rates impact your business?
Here are their responses:
I’m very optimistic about rates coming down. Technically, they already have even before the Fed moves. I’m hopeful that lower rates lead to increased housing activity. More people moving is great for our business and industry.
—Adam Joss, The Vertical Connection, Columbia, Md.
I’d like to believe that a 25- or even 50-point rate cut will create some movement, but the cost of living and housing prices are still too high in my markets, and there is still a housing shortage. This could create a bidding war on available housing, keeping the prices high. It may take several rate cuts before consumers can afford available housing.
—Eric Mondragon, RC Willey, Salt Lake City
We’re hoping that the mid-level home sales will pick up with lower interest rates which will, in turn, add to our already busy remodel schedule. We also believe this being an election year that people are in a wait-and-see mode.
—Don Cantor, Lake Interiors, Chelan, Wash.
Our customers who are borrowing money have slowed down on getting things done. I feel that when the interest rate is reduced the customers that are borrowing money for purchases will increase significantly.
—Chris Kemp, Dalton West Flooring, Newnan, Ga.
Reducing interest rates will eventually lower the cost of borrowing money and therefore should positively affect the housing market. Historical trends tell us that when rates are low, consumer confidence runs high, and this should give all facets of the housing market a boost.
—Scott Browne, Macco’s Floor Covering Center, Green Bay, Wis.
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