US EditionWill Mortgage Rates Drop Further After the Fed’s Rate Cut? Not Necessarily
The Federal Reserve's 0.25% rate cut may boost refinancing, with applications up 58% week-over-week, yet mortgage rates near 6.35% still challenge affordability, experts say.
- On Wednesday the Federal Reserve lowered interest rates for the first time in nine months with a quarter-point cut, projecting two more reductions this year amid U.S. job market concerns.
- Policymakers cited growing concern about the U.S. job market as a reason for rate easing, while the 10-year Treasury yield has eased since mid-July, fueling market expectations of a Fed cut this month.
- Mortgage benchmarks indicate that applications to refinance jumped 58% last week, with the typical home cost above $400,000 and a $140 monthly mortgage difference, according to the Mortgage Bankers Association.
- Lower mortgage rates could help some buyers by boosting purchasing power, but today's cut won't break the housing market logjam without further rate declines and slower home price growth.
- Looking beyond immediate effects, analysts note the Federal Reserve's cut leaves uncertainty as mortgage rates may not fall despite last year’s experience, while first-time home buyers face challenges with a median age of 38 and nationwide home prices about 50% higher since the decade began.
76 Articles
76 Articles
Fed cuts rates, but that doesn't mean mortgages will follow
(NewsNation) — Those hoping for lower mortgage rates after the Fed's cut may be disappointed: This week's move isn't expected to bring much relief. Part of the reason is that Wednesday's quarter-point cut was widely anticipated, so it was already priced into the market. That expectation helped drive the average 30-year mortgage rate down from 6.58% in mid-August to 6.26% this week, the lowest level in nearly a year, according to Freddie Mac. The…
Mortgage rates lower following Federal Reserve's rate cut
By Samantha Delouya, CNN (CNN) — The Federal Reserve’s rate cut this week is rippling through the housing market, sending mortgage rates lower and spurring a jump in refinancing. The 30-year fixed mortgage rate averaged 6.26% for the week ending September 18, down from 6.35% last week, according to data released Thursday by Freddie Mac. This is the fourth-straight week of declines as mortgage rates fell in anticipation of the Fed’s quarter-point…
How Fed's rate cut impacts mortgages
The Federal Reserve just cut its benchmark rate for the first time since last year, but that doesn't guarantee mortgage rates will keep dropping. Mortgage rates have been declining since late July, with the average 30-year mortgage rate at 6.35%…
Associated Press News
Will mortgage rates drop further after the Fed's rate cut? Not necessarily
The Federal Reserve just cut its benchmark rate for the first time since last year, but that doesn't guarantee mortgage rates will keep dropping.
What could the Fed's rate cut mean for getting a home loan?
The Federal Reserve on Wednesday lowered interest rates for the first time in nine months, but potential home buyers are facing multiple obstacles that could keep the American dream of owning a home out of reach.New data released Wednesday by the Census Bureau shows a decrease in privately-owned building permits, housing starts, and housing completions last month compared to August 2024.The typical cost of a home for both new homes and for exist…
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