Mortgage Rates Stabilize as September Fed Meeting Looms, Offering Potential Window for Homebuyers
despite fluctuations throughout 2024, mortgage rates have largely stabilized, presenting a perhaps favorable environment for prospective homebuyers as the federal Reserve prepares for its September meeting. Currently, the national average 30-year fixed rate stands at 6.41% for home purchases and 6.50% for refinances, according too Zillow data. While rates aren’t expected to shift dramatically by year-end, the possibility of a federal funds rate cut-currently predicted with an 87% probability by the CME FedWatch tool-could influence the market.
This comes after a period of rate adjustments in 2024. Rates initially decreased from early August until the Sept. 18 Federal Reserve meeting,when a 50-basis-point cut to the federal funds rate was announced. Subsequently, rates mostly increased or held steady. The Fed further decreased its rate by 25 basis points at both its November and December meetings.The upcoming September decision will be pivotal, though mortgage rates may not directly mirror any short-term interest rate adjustments.
experts anticipate only modest rate decreases in 2025, contingent on economic conditions, inflation, and further Fed policy. This relative stability, coupled with the potential for a rate cut, suggests a cautious but potentially opportune time for those considering a home purchase.
