Mortgage Rates Plunge on Fed Decision Day: Today’s Mortgage Rates – September 18, 2024

Breaking News, 2 p.m. ET: Federal Reserve Cuts Interest Rates by 0.50%

Today, the Federal Reserve announced a 0.50% interest rate cut, a move that could have a ripple effect on mortgage rates in the coming months. While the rate cut is a positive sign for prospective homeowners, it won’t immediately make mortgages more affordable. As CNET Money highlights in their commentary, "Today’s Interest Rate Cut Won’t Make Mortgages Affordable Overnight, but It’s Still Good News."

Here’s a snapshot of today’s average mortgage rates (Sept. 18, 2024):

• 30-year fixed-rate: 6.24% (-0.06%)
• 15-year fixed-rate: 5.60% (-0.04%)
• 30-year fixed-rate jumbo: 6.30% (-0.13%)
• 5/1 ARM: 5.78% (-0.10%)
• 10-year fixed-rate: 5.89% (+0.22%)

These rates reflect data collected by Bankrate from lenders across the U.S., showing a slight but steady decline. The drop comes as inflation falls to its lowest point since spring 2021, and with a weakening labor market, many experts believe that mortgage rates will continue to trend downward in the months ahead.

Despite the Fed's rate cut, it will take more than lower mortgage rates to significantly improve housing affordability. However, this move signals a step toward more favorable conditions for those waiting on the sidelines. As Greg Sher, managing director at NFM Lending, points out, “That first cut will allow those tied to housing or interested in buying to exhale.”

Current Mortgage Rate Trends

Mortgage rates fluctuate daily in response to various economic factors such as inflation, labor data, and bond market performance. As the Federal Reserve aims to control inflation with interest rate adjustments, consumer loan rates, including mortgages, move accordingly.

While today’s 30-year fixed mortgage rate sits just below 6.3%, that figure is still more than double what it was during the height of the pandemic. Experts predict a slow, gradual decline, but a return to the ultra-low rates of 2-3% seems highly unlikely.

Finding the Best Mortgage Rates

Although rates have dipped, it’s essential to stay financially prepared. Boosting your credit score, saving for a larger down payment, and shopping around for lenders can help you secure the most favorable rate when the time is right.

For more insights, check out CNET’s Homebuying Survey or use their mortgage calculator to estimate monthly payments based on your current financial situation.