{"id":4465,"date":"2024-10-06T17:40:36","date_gmt":"2024-10-06T17:40:36","guid":{"rendered":"https:\/\/smartspending.ai\/mortgage-rates-rise-despite-feds-cut\/"},"modified":"2024-10-07T11:56:27","modified_gmt":"2024-10-07T11:56:27","slug":"mortgage-rates-rise-despite-feds-cut","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=4465","title":{"rendered":"Mortgage rates rise despite Fed\u2019s cut"},"content":{"rendered":"
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Mortgage rates rose again this week, with the 30-year fixed rate climbing to 6.26 percent, according to Bankrate\u2019s latest lender survey. That rise is in spite of the Federal Reserve announcing a larger-than-expected rate cut last month, its first reduction since the pandemic.\u201cWhile rates dropped nicely in the two weeks before the Fed meeting, they have actually moved up since then,\u201d says Melissa Cohn, regional vice president of William Raveis Mortgage. \u201cI am spending a lot of time telling people that I expect rates to drop but not as quickly as they would like.\u201d<\/div>\n<\/div>\n
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Current mortgage rates<\/h2>\n\n\n\n\n\n\n\n
Loan type<\/th>\nCurrent<\/th>\n4 weeks ago<\/th>\nOne year ago<\/th>\n52-week average<\/th>\n52-week low<\/th>\n<\/tr>\n<\/thead>\n
30-year<\/td>\n6.26%<\/td>\n6.47%<\/td>\n7.80%<\/td>\n7.06%<\/td>\n6.20%<\/td>\n<\/tr>\n
15-year<\/td>\n5.50%<\/td>\n5.73%<\/td>\n7.03%<\/td>\n6.37%<\/td>\n5.40%<\/td>\n<\/tr>\n
30-year jumbo<\/td>\n6.38%<\/td>\n6.64%<\/td>\n7.58%<\/td>\n7.08%<\/td>\n6.36%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The 30-year fixed mortgages in this week\u2019s survey had an average total of 0.28 discount and origination points. Discount points are a way for you to reduce your mortgage rate, while origination points are fees a lender charges to create, review and process your loan.<\/p>\n

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Experts tell us:Will mortgage rates go down this upcoming week?<\/p>\n<\/div>\n<\/div>\n

Monthly mortgage payment at today\u2019s rates<\/h2>\n
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The national median family income for 2024 is $97,800, according to the U.S. Department of Housing and Urban Development, and the median price of an existing home sold in August 2024 was $416,700, according to the National Association of Realtors. Based on a 20 percent down payment and a 6.26 percent mortgage rate, the monthly payment of $2,055 amounts to 25 percent of the typical family\u2019s monthly income.<\/p>\n

Will mortgage rates keep going down?<\/h2>\n

Fixed mortgage rates are not set directly by the Fed, but by investor appetite, particularly for 10-year Treasury bonds. The 30-year fixed-rate mortgage rate is often directly tied to the yield on a 10-year Treasury bond. When there\u2019s uncertainty in the market, investors buy Treasury bonds, which in turn drives yields (and mortgage rates) downward. This can lead to day-to-day rate swings as news comes in.<\/p>\n

Some say mortgage rates are unlikely to drop dramatically \u2014 lenders and mortgage investors had been anticipating the Fed\u2019s move two weeks ago. \u201cWhile rates may continue to fall as the Fed provides more guidance on its future monetary policy, the majority of the adjustment in mortgage rates appears to have already been priced in,\u201d says Ruben Gonzalez, chief economist at real estate brokerage Keller Williams.<\/p>\n

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Learn more:How are mortgage rates set?<\/p>\n<\/div>\n<\/div>\n