This week, the mortgage rate fell below 6.5% for the first time in 2024, reaching its lowest level in 15 months. The Federal Reserve’s recent actions might pave the way for additional rate cuts this fall and into 2025, particularly if the Fed indicates a more aggressive stance on reducing rates following earlier hikes intended to tackle inflation.
Since the COVID-19 pandemic started, buyers have encountered difficulties in the real estate market. Record-low interest rates and limited housing supply drove home prices to historic highs during the pandemic, leading to intense bidding wars and soaring inflation that hit potential buyers hard, with mortgage rates climbing to their highest levels since 2000.
This fall, there is a glimmer of hope on the horizon for potential buyers. According to Fred Bolstad, Head of Retail Home Lending at U.S. bank, "All indications are the Fed will reduce short-term rates in September.”
Many prospective homeowners are feeling optimistic about the direction of the market as they look ahead to the upcoming date. It’s seen as a promising opportunity to secure an affordable mortgage, especially with rates showing a positive trend. As rates fluctuate, consumers can feel confident and excited this fall about the potential to lock in a more favorable rate and make their homeownership dreams a reality.
See more mortgage rates on Zillow.