The average rate for a 30-year fixed-rate mortgage (FRM) is at its lowest level since October 2024, providing locked-out homebuyers with an opportunity to take advantage of lower interest payments.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The 30-year FRM sits at 6.58%, down from 6.63% a week ago and up from 6.49% year-over-year, according to Freddie Mac. The rate has now declined for four consecutive weeks.
The 30-year FRM is influenced by the 10-year Treasury yield, which has fallen in recent weeks amid concerning nonfarm payrolls data.
30-Year FRM Already Prices in a Rate Cut
Redfin head of economics research Chen Zhao believes that the 30-year FRM has already priced in a rate cut at next month’s Federal Open Market Committee (FOMC) meeting.
“The mortgage rates that buyers can lock in today have already priced in the likelihood that the Fed will cut rates on Sept. 17,” said Zhao. “That means that mortgage rates are unlikely to drop any further when the Fed actually makes the expected cut.”
Meanwhile, a lower mortgage rate has spiked refinancing applications by 23% week-over-week through last Friday as homeowners seek to reduce their interest payments.
Head over to TipRanks’ Stock Analysis and News feed for the latest breaking stories.
