Mortgage rates in the US fell sharply on Tuesday, as investors in mortgage bonds actively bought them ahead of the Federal Reserve's expected rate cut, UNN reports with reference to CNBC.
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According to Mortgage News Daily, the average rate on a 30-year fixed mortgage fell by 12 basis points from Monday to 6.13%. This is the lowest level since the end of 2022.
"Overall, the situation is reminiscent of September 2024, when rates behaved similarly for the same reasons before the Fed meeting, with an almost 100% probability of a rate cut," said Matthew Graham, COO of Mortgage News Daily. "At that time, mortgage rates paradoxically rose after the Fed cut rates. The same could happen now, but it is by no means guaranteed."
In a video podcast for Property Play on CNBC, Willy Walker, CEO of commercial real estate company Walker & Dunlop, said that similar trends have been observed in the past.