Mortgage rate today
Mortgage rate today: The Federal Reserve said it will lower its benchmark interest rate by a quarter percentage point, offering a modest break from the steep borrowing costs that have burdened American households, as per a report. Here’s a look at how the mortgage rates will get impacted. Fed Rate Cut Impact On Mortgage RatesWhile the Fed does not directly impact mortgage rates, it sets the federal funds rate, which is what banks charge each other for overnight loans, as per a report. The Fed Chair Jerome Powell along with 11 fellow members of the Federal Open Market Committee lowered the central bank’s overnight rate down to a range of 4% to 4.25%, as per a Realtor.com report.Short-Term vs Long-Term Rates: What Moves Mortgage RatesJake Krimmel, a senior economist at Realtor.com, said that, “The Fed is setting short-term interest rates,” adding, “Things like the mortgage rates are longer-term interest rates,” as quoted by CBS News.While adjustable-rate mortgages are more sensitive to changes in the federal funds rate because they are tied to the Secured Overnight Financing Rate (SOFR), a short-term market index, but fixed-rate mortgages tend to move in the same direction as the bond market, particularly the 10-year Treasury note, because they are both long-term instruments with relatively stable risk, reported CBS News, citing Brookings Institute.Live EventsFollowing the rate cut, yields on 10-year Treasury notes, a key indicator for mortgage rates, ticked down slightly and those long-term yields, as well as mortgage rates, continued to hover near their lowest levels of 2025, as reported by Realtor.com.ALSO READ: Travis Kelce and Taylor Swift wedding planning: Choosing live music for their big dayMortgage Rates Are Already Near 2025 LowsSince the quarter-point cut was widely anticipated, it was already largely priced into mortgage rates, which have fallen in recent weeks and reached an 11-month low of 6.35% last week, as reported by Realtor.com.Selma Hepp, chief economist at real estate analytics firm Cotality, explained that, “The Federal Reserve rate cut this week has already been priced into mortgage rates, so the immediate impact will be minimal,” as quoted in the report.Expert Predictions on Future Mortgage Rate Movements After Fed CutsHepp added that, “However, while a single rate cut may not cause a significant additional drop, a series of anticipated cuts for the rest of 2025 and into 2026 could continue to put gradual downward pressure on mortgage rates,” as quoted by CNBC.Even Bankrate financial analyst Stephen Kates pointed out that for prospective homebuyers it’s “unlikely to make a noticeable difference for most consumers at the time of the announcement,” as quoted by AP.ALSO READ: StubHub prices IPO at $23.50, raises $800 million, valued at $8.6 billion, ahead of NYSE debutHe said that “Much of the impact on mortgage rates has already occurred through anticipation alone,” adding, “(Mortgage) rates have been falling since January and dropped further as weaker-than-expected economic data pointed to a cooling economy,” as quoted in the report.However, Kates highlighted that a declining interest rate would provide some relief for borrowers over time, as he said, “Whether it’s a homeowner with a 7% mortgage or a recent graduate hoping to refinance student loans and credit card debt, lower rates can ease the burden on many indebted households by opening opportunities to refinance or consolidate,” as quoted by AP.FAQsHas the recent Fed rate cut already lowered mortgage rates?Most of the impact was already priced in before the announcement, so immediate changes are minimal, as per the CNBC report.Does the Fed rate cut affect homebuyers looking to buy now?Not immediately. Most changes in mortgage rates happen gradually and are influenced by multiple factors, as per the AP report.Add as a Reliable and Trusted News Source Add Now!
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