Since late 2022, mortgage rates have jumped to between 6% and 7% — and in fall 2023, they nearly eclipsed 8%, marking the highest 30-year mortgage rate seen in over two decades. Rates started to drop this summer in anticipation of the Federal Reserve cutting the federal funds rate by 25 basis points at its Sept. 18 meeting.
The Fed did indeed announce a rate decrease at the September meeting, but the slash was more significant than originally expected — 50 basis points instead of 25. The central bank also predicts two more rate cuts in 2024 and four in 2025.
Many expected mortgage rates to start falling in response to the Fed’s September cut — but for the most part, rates have been inching up. This is due in part to a strong economy and an increasing 10-year Treasury yield. So, when will mortgage rates go down significantly enough to make monthly payments more affordable?
Aly J. Yale | Yahoo Finance