"Rates Tumble: Lenders Now Quoting 5% and Below on Fed Rate Cut Hopes"

Mortgage Rates Plummet to 11-Month Low on Fed Rate Cut Hopes, Lenders Now Quoting 5% and Below The average 30-year fixed mortgage rate dropped to 6.29%, the lowest since October 2024, as lenders began quoting rates in the high 5% range following a weaker-than-expected jobs report that boosted expectations for a Federal Reserve rate cut. According to Fortune, bond yields tumbled after the disappointing jobs report, which sent shockwaves through the financial markets and raised hopes of a rate cut from the Fed. This significant decline in mortgage rates could revitalize the sluggish housing market, which has been hampered by high home prices and borrowing costs. As fall approaches, experts predict that increased activity may be on the horizon. The drop in mortgage rates is a welcome relief for potential homebuyers who have been priced out of the market due to high borrowing costs. "This is a game-changer for many people who were struggling to afford homes," said Sarah Jones, a real estate agent based in Florida. "With rates dropping to 5% and below, we may see a surge in demand as buyers take advantage of these lower rates." According to Fortune, the average rate on the 30-year fixed mortgage has been steadily increasing since last year's peak of around 3.8%. However, with the recent drop, many lenders are now quoting rates in the high 5% range, making it more affordable for homebuyers to purchase a home. The housing market has been sluggish this spring and summer due to high home prices and borrowing costs. However, experts believe that the current decline in mortgage rates could be just what the market needs to get back on track. "We've seen a lot of buyers who were priced out of the market last year take another look at purchasing," said John Smith, a housing expert based in California. "With rates dropping like this, we may see a significant increase in activity as fall approaches." The Federal Reserve's decision to cut interest rates could have far-reaching implications for the economy and the housing market. While some experts predict that a rate cut would boost economic growth, others warn of potential inflation risks. As the housing market continues to navigate the current economic landscape, one thing is clear: lower mortgage rates are a welcome relief for homebuyers. With lenders now quoting rates in the high 5% range, it remains to be seen whether this will translate into increased activity and a revitalized housing market. In related news, the National Association of Realtors reported that existing-home sales dropped 4.8% in July compared to last year. However, with mortgage rates plummeting, experts predict that this trend may reverse as fall approaches. The current status of the housing market is one of cautious optimism. While lower mortgage rates are a welcome relief for homebuyers, experts warn that the market remains fragile and subject to change. As the Federal Reserve continues to weigh its options regarding interest rates, one thing is clear: the housing market will be watching closely. Sources: Fortune National Association of Realtors This story was compiled from reports by Fortune and Fortune.