"Mortgage rates have been mostly falling since late July on expectations of a Fed rate cut. The average rate on a 30-year mortgage was at 6.35% last week, its lowest level in nearly a year, according to mortgage buyer Freddie Mac. A similar pullback in mortgage rates happened around this time last year in the weeks leading up to the Fed's first rate cut in more than four years."
""Rates could come down further, as the Fed has signaled the potential for two more rate cuts this year," said Lisa Sturtevant, chief economist at Bright MLS. "However, there are still risks of a reversal in mortgage rates. Inflation heated up in August and if the September inflation report shows another bump in consumer prices, it's possible we could see rates rise.""
Mortgage rates have generally declined since late July amid expectations of Federal Reserve rate cuts. The average 30-year mortgage rate reached about 6.35%, the lowest in nearly a year, according to Freddie Mac. A similar pre-cut pullback occurred last year when rates briefly fell to 6.08%, but rates subsequently rose above 7% by mid-January despite additional Fed cuts. Further declines remain possible if the Fed reduces rates, but rising inflation and higher Treasury yields could push mortgage rates back up. Mortgage rates are driven by the 10-year Treasury yield, mortgage-backed securities pricing, and investor expectations for the economy and inflation.
Read at Kqed
Unable to calculate read time
Collection
[
|
...
]