WASHINGTON, Sept 12 (Askume) – U.S. mortgage rates fell this week on expectations that the Federal Reserve will begin cutting interest rates next Wednesday , but that may not immediately boost the housing market as home prices remain high.
Mortgage financier Freddie Mac said in a statement Thursday that the average interest rate on the popular 30-year fixed-rate mortgage fell from 6.35% last week to 6.20% for February 2023. The average for the same period last year was 7.18%.
The average 15-year fixed-rate mortgage rate fell to 5.27% from 5.47% last week. This compares with an average rate of 6.51% a year ago. The Federal Reserve is expected to cut interest rates by 25 basis points next week , triggering an easing cycle.
“While the mortgage rate environment has improved, potential buyers remain on the sidelines as they grapple with high home prices and ongoing supply shortages,” said Sam Hart, chief economist at Freddie Mac.
