How low will mortgage rates drop after the Fed cuts rates? Experts weigh in

With Fed rates holding steady over the last couple of years, mortgage interest rates have stayed high overall — even hovering close to 8% at one point recently. And those high mortgage loan rates, coupled with the high cost of living and inflation, have led many potential homebuyers to pause their search for a home and a mortgage to buy it with.

But in recent weeks, there has been some welcome news for potential homebuyers. Inflation has cooled slightly — and mortgage rates fell to a four-month low in tandem. A Fed rate cut is also likely on the horizon for September, which would cause mortgage interest rates to drop even more.

How much would a Fed rate cut impact mortgage rates, though? If you’re ready to buy a home, here’s how much you can expect mortgage rates to fall after the Fed cuts rates.

 

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