Mortgage rates drop to lowest level in more than a year

A bit of relief for home buyers and homeowners after mortgage rates dropped to their lowest level in more than a year.

Experts are warning to be mindful that the drop in rates could be temporary.

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The 30-fix year fixed-rate mortgage rate average is down to 6.47%m down more than 1% from last year’s peak after the fed increased interest rates to fight inflation. The numbers come from the Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac.

“So as their taking on more debt to afford their utilities, their food, their medical expenses, there’s an option to get into those lower rate, debt consolidate out of those 26, 27 percent credit card rates that are drowning people’s household income,” said Kurt Strandson, owner of Pinnacle Mortgage Corporation.

Strandson said there is an expectation the Federal Reserve wills tart to cut the federal funds prime rate next month, something he said they’ve been teasing since July 2022.