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1h ago

Mortgage Rates Hover Near 6.5% as ARM Bets Grow and Fed Turmoil Clouds Outlook

Analysts see only modest relief ahead even if the Fed cuts next month.

Millennial and Gen Z homebuyers could be in for a rude awakening if they plan to refinance or took on an adjustable-rate mortgage.
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Overview

  • Average 30-year fixed rates remain in the mid-6% range, with Mortgage News Daily posting 6.52% today and Freddie Mac recently at 6.58%.
  • About two-thirds of recent millennial and Gen Z buyers used adjustable-rate mortgages or plan to refinance, a gamble experts warn could strain finances if rates fail to fall.
  • Intercontinental Exchange projects rates could slip to roughly 6.3% by January 2026, potentially putting about 3 million homeowners in position to refinance.
  • Jerome Powell has signaled openness to a September rate cut, though mortgage pricing is driven more by the 10-year Treasury and may not drop in lockstep with Fed moves.
  • Markets are assessing uncertainty at the Federal Reserve after President Trump moved to oust Governor Lisa Cook, even as mortgage rates touch recent lows.