The Federal Reserve’s benchmark rate does not directly impact mortgage rates, which are tied to long-term treasury bills.
Lower short-term rates could help the housing market by reducing costs for builders and potentially boosting the overall economy.
Mortgage rates, a key stat for those thinking of buying or selling a home in the Eugene area, have dipped following the Federal Reserve’s Sept. 17 interest rate cuts.
But mortgage rates aren’t likely to fall much more before the next fed meeting.
The average 30-year fixed rate mortgage fell to 6.35%, according to Sept. 11 numbers from Freddie Mac. On Sept. 18, after the Fed’s .25 percentage point cut lowered the benchmark rate to 4%, the 30-year mortgage average ticked down to 6.26%.
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.
Why mortgage rates only slightly fall after Federal Reserve rate cut
