Lending Market Set to Open Up Even Before 0.5% Interest Rate Cut

Fixed-rate mortgages moved even lower this week. With 30-year fixed-rate mortgages decreasing to 6.15%, that represented a two year low. Even refinancing increased by almost 25% from the previous week and more than doubled 2023 applications.

Applications for mortgages also increased week-over-week.

The movement in rates happened even before the Federal Reserve announced a 0.5% interest rate cut Wednesday, a move that was a mild surprise to some analysts that were expecting a more steady 0.25% cut that influence mortgage rates.

The Mortgage Bankers Association reported mortgage applications jumped 14% week over week. The rates still do not effect most home owners in the United States as the majority are locked into even lower rates, but it might be enough for some owners to consider moving that have been delaying due to interest rates locks.

Housing prices are still expected to grow, but at a more steady pace than the previous years.

Real Estate agents are hoping that interest rates will help more people enter into the market to make it a more robust market both for buyers and sellers.