Mortgage rates decreased in anticipation of the Federal Reserve’s Sept. 17 rate cut.
Following the Fed’s announcement, the average 30-year mortgage rate saw a slight increase.
Experts suggest that mortgage rates are not expected to fall significantly further in the near future.
Mortgage rates dipped in anticipation of the Federal Reserve’s rate cut Sept. 17, something many anxiously watching the housing market hope gives metro Phoenix’s housing home sales a boost.
But rates aren’t likely to fall much more anytime soon, and even inched up a bit after the Fed’s move.
The average 30-year fixed rate mortgage fell to 6.13%, earlier this week, according to Mortgage News Daily. But on Wednesday after the Fed’s .25 percentage point cut, lowering the benchmark rate to 4%, the 30-year mortgage average ticked up to 6.22%.
The Federal Reserve’s benchmark rate isn’t directly connected to mortgage rates. It is tied to credit cards, auto loans and other borrowing rates.
“I think the Fed’s rate cut was already tied into lower mortgage rates,” said Mark Stapp, director of the master of real estate development program at Arizona State University. “To see where mortgage rates are headed, look at 10-year Treasury Notes.”
When Treasury yields rise, mortgages typically rise too. The 10-year note yield also inched up a bit on Wednesday.
Mortgage rates were steadily inching down since reaching almost 7% in May. Last week, the average rate was 6.35%, according to Freddie Mac.
“After the Fed met today, I polled lenders, and what’s interesting is mortgage rates went up a bit,” Trevor Halpern, CEO of Halpern Residential at eXp Realty, said. “The rate cut was expected, so today the market just twitched a bit.”
Michael Fraley, Arizona market president of Oakwood Homes, said the rate cut stil could help the housing market.
Here’s why mortgage rates didn’t fall after Federal Reserve rate cut
