Mortgage rates came down again last week, and with the expectation that they could fall further, mortgage demand suddenly jumped, especially for refinancing.
The Federal Reserve is expected to make its first interest rate cut in four years on Wednesday, and while mortgage rates don’t follow the Fed exactly, they are influenced by policy.
“The most important takeaway is that lower mortgage rates are not only not remotely guaranteed by [the] Fed rate cut.
“Application activity was up significantly last week, as market expectations of a rate cut from the Fed pulled mortgage rates lower,” said Joel Kan, an economist with the Mortgage Bankers Association.
“Homebuyers are seeing improving affordability conditions, sparked by lower rates and slower home-price growth.”
Persons:
Jerome Powell’s, They’re, ”, Matthew Graham, Joel Kan, ” Kan, “
Organizations:
Federal, Mortgage News, Mortgage, Labor, Fed, Association