The Federal Reserve's actions influence borrowing rates, but there are also other key factors that could affect mortgage interest rates. Here are five.
Falling mortgage rates will offer relief to Americans, but it could also lead to an increase in demand, which could lead to higher prices amid the market's housing shortage.
The contract rate for the 30-year and the 15-year fixed terms are expected to fall between 25 basis points to half a percentage point after the Fed cuts its interest rates.
Mortgage payments fell after contract rates declined to 6.46% in the week ending Aug. 22. The median monthly mortgage payments in the United States fell to just over $2,500, marking the lowest level recorded in four years.
Mortgage rates have fallen to 6.49%, the lowest recorded in over a year. The housing market has been tough for hopeful buyers over the last few years, but with mortgage rates now declining, the market could potentially see a rise in demand.