US Mortgage Rates Fall

The average rate on a 30-year U.S. mortgage has fallen to its lowest level in nearly a year, easing to 6.35% from 6.5% last week, according to United States — Freddie Mac. Similarly, 15-year fixed-rate mortgages also saw a decline. This trend is largely influenced by growing expectations that the United States — Federal Reserve will cut its benchmark short-term interest rate at its upcoming meeting, following signals from United States — Federal Reserve Chair Jerome Powell regarding weaker job gains. While the United States — Federal Reserve does not directly set mortgage rates, its actions impact bond investors' appetite for U.S. government bonds, which lenders use to price home loans. The housing market has been in a slump since 2022, and these lower rates are expected to provide more purchasing power for homebuyers, although they could also increase market competitiveness. Experts like Lisa Sturtevant of Bright MLS caution that rates may not drop much further and could even increase after a United States — Federal Reserve cut.