Posted on 09/19/2024 10:08:48 AM PDT by Miami Rebel
The average rate on a 30-year mortgage in the US edged closer to 6% this week to its lowest level since early February 2023.
The rate fell to 6.09% from 6.20% last week, mortgage buyer Freddie Mac said Thursday.
A year ago, the rate averaged 7.19%.
The last time the average rate was this low was on Feb. 2, 2023.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners seeking to refinance their home loan to a lower rate, also eased this week.
The average rate fell to 5.15% from 5.27% last week.
A year ago, it averaged 6.54%, Freddie Mac said.
Mortgage rates are influenced by several factors, including how the bond market reacts to the Fed’s interest rate policy decisions.
That can move the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing home loans.
Rates have been mostly easing since July as signs of waning inflation and a cooling job market raised expectations of a Fed cut, sending the yield on the 10-year Treasury lower.
That rate cut arrived Wednesday, as the Federal Reserve lowered its main interest rate for the first time in more than four years.
Fed officials also signaled they expect further cuts this year and in 2025 and 2026.
The rate cuts should, over time, lead to lower borrowing costs on mortgages.
(Excerpt) Read more at nypost.com ...
Because nobody has the money to buy anyway.
That’s true, sadly.
There goes your 5% high yield savings accounts.
We refied 15 years ago at 2.85 and are within $20k of paying off the mortgage.......we feel blessed to have missed all this mess.
You can’t preside over a 4+% rate hike and then credibly claim credit for a half-percent improvement.
When it gets below 3%....let me know AP
Hopefully the confiscations won’t start during your lifetime.
Money has been fleeing money markets. Vanguard Federal has dropped from 5.38% to 5.19% in the past month. In few weeks we’ll be in the low fours.
I’ve been a buyer of corporates. I can get 6.5% to 7% on 2- to 4-year paper.
Yes, I hope America dodges this bullet.
I’ll burn it to the ground before that shit happens
FIRE SALE!
Not.
I just locked in at 4.0% last month. It feels nice to do something right for a change. I figured rates would come down after the election. I am mildly surprised Powell didn’t wait until November. He is not wrong to lower rates, but it is bad optics right before the election.
I refinanced my mortgage in 2021 , going from a 30 year fixed 5.75% (from 2003) down to 15 year fixed 3.25% interest.
It’ll never be that low again.
Good news for us. Our house is blessedly almost ready to go on the market.
It is political stunt. You do realize that?
That would have looked so cheap for most of my adult life.
“It is political stunt. You do realize that?”
I don’t agree. It was the right thing to do for the economy and at the right time.
And nobody is going to change their vote because of this anyway.
Well its always political but taking advantage of it is fortuitous. 😉
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.