Mortgage Rates Hit 11-Month Low: What Buyers and Homeowners Need to Know
Mortgage shoppers have reason to celebrate this week. Rates have dipped to their lowest point in nearly a year, fueled by positive economic reports and anticipation of a Federal Reserve rate cut. If you’ve been waiting for the right moment to buy or refinance, now may be the time to take a closer look.
Key Takeaways
Rates as low as 5.875% available on loans up to $300,000.
Larger loans are averaging closer to 6.25%.
Mortgage rates are trading at an 11-month low.
All signs point to a potential 0.25% Fed rate cut on September 17.
Why Rates Are Dropping
Positive Jobs Report
Last Friday’s employment data came in favorable for interest rates, giving lenders more confidence and creating downward pressure on borrowing costs.
Federal Reserve Watch
Markets are now pricing in a likely quarter-point rate cut from the Fed at its upcoming September 17 meeting. While the Fed will continue to monitor inflation closely, mortgage rates have already adjusted in anticipation of the move.
12-month rate trend for WI from HSH.com
Average WI mortgage rates showing the past 12 months of data from HSH.com.
How This Affects You
For buyers, this dip in rates could improve your purchasing power — lowering monthly payments or qualifying you for a higher price point. Homeowners with existing mortgages may find now is the right time to refinance and save. Sellers may also benefit from increased buyer activity as affordability improves.
Final Thoughts
Mortgage rates don’t stay still for long. With signs pointing toward a Fed rate cut and inflation still being monitored, today’s favorable conditions may not last forever.
Call to Action
Thinking about buying, selling, or refinancing? Contact Core Realty Group today to explore your options in this shifting market.