Freddie Mac Mortgage Rates—Aug. 29, 2024
What happened to mortgage rates this week
The Freddie Mac rate for a 30-year mortgage declined by 0.11 percentage points to 6.35% this week, the lowest level since May 2023, as 10-year Treasury yields stabilized around the 3.8% range since the prior week’s survey. This is due to an all-but-guaranteed rate cut next month. What’s more, not only has the market already priced in a 25 basis point cut at the Fed’s September meeting, but also 25 basis point cuts each in the November and December meetings. As such, we shouldn’t expect the downward movement in mortgage rates to accelerate unless worse-than-expected economic indicators suggest the market is headed for anything but a soft landing.
What it means for the housing market
Last week in Jackson Hole, WY, Fed Chairman Jerome Powell made it very clear that the FOMC now sees that it is time for a shift in monetary policy. They believe the battle against inflation is coming to an end, and that their primary concern in the road ahead will be maintaining a healthy labor market.
Powell did acknowledge that the FOMC will continue to use incoming data points on inflation and the labor market to sharpen their pencils on when, and how deep, rate cuts will be. However, we do expect more stability in rates throughout the rest of the year.
While homebuyers might be somewhat disappointed that rates might not fall much further in 2024, our recent report found that borrowers can actually lower their mortgage rate up to 150 basis points simply by shopping around, improving their credit score, increasing their down payment, and paying off existing debt.
Source:
Realtor.com. (2024, August 29). Freddie Mac mortgage rates—August 29, 2024. Realtor.com. https://www.realtor.com/research/freddie-mac-mortgage-rates-august-29-2024/