September 14, 2024
Mortgage rates just dropped again to a level we haven’t seen in more than a year.
Why? What’s going on?
Well – first – according to Freddie Mac the average 30-year fixed mortgage rate which is the most popular in the United States, fell this week to 6.2%. That is down from last week when the rate was 6.35% and down from a year ago when the rate was 7.18. For the record – it’s also down significantly from the most recent high we saw in October of 2023 when the 30-year fixed was 7.8%.
So why are these rates going down? According to Freddie Mac they’re coming down because all the economic data that is coming in has been calming down and because – as a result — I have been reporting for months – the federal reserve is set to cut interest rates next week. But that doesn’t mean problem solved the housing market is amazing and there’s now a buying frenzy going on. No.
Freddie Mac says despite this improving mortgage rate situation, buyers are still sitting on the sidelines because prices are still high and there has been a persistent lack of supply.
I know you’re going to ask – so – with all this mortgage information — is this a good time to buy? The answer is – that is a personal decision. You need to assess your own financial situation and you need to speak to a real estate professional who you trust.
What I can tell you is – the Federal Reserve is set to cut interest rates next week. And yes interest rates do impact new mortgages and variable mortgages. But we don’t yet know by how much the fed will cut those rates.
More from Freddie Mac here.
