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4d ago

Mortgage Rates Fall to Lowest Level Since Early April at 6.84% on Fed Pause

Markets now see an 89% chance of a September Fed cut following a drop in 30-year mortgage rates to 6.84%.

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Overview

  • The average rate on new 30-year fixed mortgages declined 2 basis points to 6.84% on Tuesday, marking its lowest reading since early April.
  • Refinancing costs for a 30-year fixed loan fell by 5 basis points to 7.00%, reaching the cheapest level since April 4.
  • The Federal Reserve maintained its benchmark rate at its June meeting, and CME Group data now shows an 89% probability of a first rate cut at the September meeting.
  • Fannie Mae adjusted its outlook, forecasting average 30-year mortgage rates of 6.5% by the end of 2025 and 6.1% by the close of 2026.
  • Purchase mortgage applications slipped slightly last week but are still up 11% from a year ago, and rates continue to differ across states in response to local economic and regulatory factors.