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There has been a bit of a confusion when it comes to buying a home in America right now: it appears that interest rates are cooling off, yet mortgage rates have gone up. If you had to do a double ...
Not only have home prices been elevated, but mortgage rates have been relatively high -- especially compared to the record-low rates borrowers enjoyed in 2020 and 2021.
For example, if mortgage rates drop 0.75%—in line with the projected federal funds rate cut—you could save $750 in interest annually for every $100,000 you borrow, or $22,500 in interest ...
In fact, Fannie Mae expects average 30-year mortgage rates of 5.7% by the end of 2025, which could certainly make it more affordable to buy or refinance a home.
The average 30-year fixed mortgage rate dipped back toward 7% this week, settling at 7.09%, according to Freddie Mac.This is the first time the weekly average rate has fallen in over a month.
If you signed your mortgage in 2020 or 2021, then you probably locked in a pretty great rate on that loan. But if you signed your mortgage in late 2022 or 2023, it was probably a very different story.