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 ...
The banks and consumers (all of us) needed this. It was the right thing to do at the right time. You are angry because you fear it will help Democrats. It’s OK, I understand.
LOL. 6 weeks before the election we get 50 pt rate cut?
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