Mortgage Rates Edge Lower as Federal Reserve Pauses Rate Hikes
The US mortgage rates experienced a slight decline as the Federal Reserve decided not to raise rates for the first time since March 2022.
According to Freddie Mac's report, the average 30-year fixed-rate loan dropped to 6.69%, down from 6.71% the previous week. On the other hand, the 15-year fixed mortgage increased by three basis points to 6.10%.
Freddie Mac's chief economist, Sam Khater, explained that the decline in mortgage rates was influenced by the Federal Reserve's decision to pause rate hikes, along with a slower pace of inflation and economic growth.
While Khater mentioned that if these trends continue and the Federal Reserve avoids raising rates further, mortgage rates may continue to drop. However, it's worth mentioning that the Feds hinted at two more hikes later this year.