Mortgage Rates Continue to Fall, Raising Hopes of the Fed Cutting Rates from com base rate notu Watch Video

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✓ Published: 21-Jun-2024

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Mortgage Rates Continue , to Fall, Raising Hopes of the , Fed Cutting Rates.<br/>ABC reports that borrowing costs for <br/>home loans continued to ease this week, <br/>with the average rate on a 30-year mortgage <br/>falling to its lowest level since April.<br/>According to mortgage buyer <br/>Freddie Mac, the rate fell from<br/>6.95% to 6.87% last week. .<br/>That figure is still significantly higher than <br/>what the rate was during the same time last year, <br/>which was at an average of 6.67%. .<br/>15-year fixed-rate mortgages <br/>also eased, falling from <br/>6.17% last week to 6.13%. .<br/>During the same time last year, <br/>the average rate was at 6.03%.<br/>Those higher rates can add hundreds of dollars <br/>to monthly costs for borrowers, which limits the <br/>purchasing options of potential homebuyers.<br/>Mortgage rates fell for <br/>the third straight week <br/>following signs of cooling <br/>inflation and market <br/>expectations of a <br/>future Fed rate cut, Sam Khater, Freddie Mac’s chief economist, via ABC.<br/>ABC reports that rates are influenced by a number <br/>of factors, including the Federal Reserve's interest <br/>rate policy and the 10-year Treasury yield.<br/>ABC reports that rates are influenced by a number <br/>of factors, including the Federal Reserve's interest <br/>rate policy and the 10-year Treasury yield.<br/>Due to yields also beginning to ease, the Federal <br/>Reserve could start to drop its main interest rate <br/>after hiking it up to the highest level in over 20 years.<br/>Last week, Fed officials suggested that they would make <br/>just one cut to their benchmark interest rate in 2024, <br/>down from previous projections of three cuts for the year.