The Fed cut rates for third time this year. Here’s what it means for mortgages
What the Fed’s rate cut could mean for mortgages
- The Federal Reserve reduced interest rates by 0.25 percentage points, marking the third such cut this year, a move widely expected by economic experts.
- Mortgage rates are not directly affected by the Fed's immediate rate cuts but rather by the market's anticipation of future monetary policy decisions.
- While mortgage rates generally track the Fed rate, their movement is also influenced by other factors, such as Treasury bonds, leading to occasional divergence.
- Mortgage experts anticipate a continued decline in rates towards the end of the year, citing historical trends and potential job market weakness.
- Should home loan rates continue to fall, increased mortgage demand is expected to drive up home values due to the current low inventory of available housing.