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Mortgage Rates Rise Slightly After Fed's First Rate Cut in Four Years

The Federal Reserve's recent rate cut has influenced mortgage rates, which have edged up again after a brief decline.

exterior shot of home
FILE - In this April 1, 2020 photo, a "For Sale" sign stands in front of a home that is in the process of being sold in Monroe, Wash., outside of Seattle. U.S. home sales rose a record-breaking 24.7% in July, extending last month's rebound after the coronavirus pandemic all but froze the housing market this spring, the National Association of Realtors said Friday, Aug. 21, 2020. (AP Photo/Elaine Thompson, File)
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Overview

  • The average 30-year fixed mortgage rate has increased to approximately 6.01% after dropping to a two-year low earlier this week.
  • The Federal Reserve announced a 0.50 percentage point cut to the federal funds rate, marking its first reduction since 2020.
  • Rates for 15-year fixed mortgages also saw a slight increase, now averaging around 5.11%.
  • Despite the recent rise, current mortgage rates remain significantly lower than last year's peaks, which exceeded 7%.
  • Economic factors such as inflation trends and Federal Reserve policies continue to influence mortgage rate fluctuations.