STATEWIDE (NETWORK INDIANA) — The Federal Reserve announced its first cut to interest rates for the first time in four years on Wednesday.

The decision to cut interest rates is an indication that confidence is growing in the economy after years of feeling the pinch of inflation. What this means for you is that if you bought a home in the last four years, now may be the best time to refinance your mortgage.

In like manner, it’s also a great time to buy a house if you are in the market for one.

“It should actually be a great time to buy or a great time to refinance because it’s providing some relief to borrowers,” said Mike Wood, founder of mortgage lender Bailey & Wood Financial Group.

“Obviously with everything, with the economic times, people need that relief,” he added. “There is relief in there now that can lower some of those payments and opportunities for clients to save some money.”

He said many lenders and banks were privy to the decision before it was made public on Wednesday so they are already on the move in helping people refinance or buy a home.

“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,” Wood said.

That additional relief could come in the form of more rate cuts by the Fed in the coming months.