A cut to the federal funds rate appears likely for September. Here's what that could do to mortgage interest rates.
Mortgage interest rates plummeted during the pandemic in 2020 and 2021, with rates on 30-year mortgage terms as low as 2.71%. But as the pandemic waned and inflation surged, the Federal Reserve raised its federal funds rate numerous times. That eventually led to the rate hitting a range between 5.25% and 5.50%, its highest point in 23 years. Mortgage rates rose in tandem, rising to their highest level since 2000 last summer.
But it will take months, if not years, for these rate cuts to be issued and reverberate through the mortgage environment. And inflation will need to remain controlled for these cuts to be issued, or they could be halted or even reversed. Even with that understanding, buyers should know that the chances of mortgage rates hitting the 3% to 4% range that they were in a few years ago is highly unlikely.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed holds interest rates steady and stops short of signaling September cutPolitical News and Conservative Analysis About Congress, the President, and the Federal Government
Read more »
Fed could cut rates ‘as soon as’ September meeting, Powell saysFederal Reserve Chair Jerome Powell said an interest-rate cut could come as soon as September after the U.S. central bank voted to leave its benchmark at the...
Read more »
Fed holds interest rates steady and stops short of signaling September cutPolitical News and Conservative Analysis About Congress, the President, and the Federal Government
Read more »
Fed to keep interest rates on hold, is September cut a done deal?The US Federal Reserve (Fed) will announce monetary policy decisions following the July 30 - 31 policy meeting on Wednesday.
Read more »
Fed unlikely to cut rates next week, but may send clear signal on September cutFed unlikely to cut rates next week, but may send clear signal on September cut
Read more »
Fed unlikely to cut rates next week, but may send clear signal on September cutFed unlikely to cut rates next week, but may send clear signal on September cut
Read more »