Mon Sep 09 14:15:35 UTC 2024: ## Fed’s Expected Rate Cut May Not Mean Lower Mortgage Rates, Experts Say

**New York, NY** – Despite anticipation of a Federal Reserve interest rate cut at its upcoming September meeting, experts believe the impact on mortgage rates may be minimal. The Fed is widely expected to reduce rates by 25 basis points, bringing the federal funds rate to a range of 5.00% to 5.25%.

However, according to Dr. Selma Hepp, chief economist at CoreLogic, mortgage rate movements often anticipate Fed actions, meaning the expected rate cut is already reflected in current lending rates. Similarly, Shmuel Shayowitz, president and chief lending officer at Approved Funding Corp, believes the market has factored in the anticipated September rate cut.

While a slight reduction in mortgage rates is possible, experts suggest that significant decreases are unlikely. The degree of any further rate drops will depend on economic indicators such as inflation and employment trends. A cooling job market could lead to more aggressive Fed cuts, potentially driving mortgage rates down further. However, the consensus forecast anticipates mortgage rates remaining in the low to mid 6% range by year’s end.

Potential homebuyers weighing whether to wait for lower rates should consider the advantages of buying now. The current market offers less competition, potentially increasing chances of securing a dream home at a lower price. However, waiting could lead to increased competition and potentially higher home prices if the market heats up. Ultimately, the decision to buy now or wait depends on individual financial circumstances and risk tolerance.

“I think mortgage rates have seen their highs for 2024, and rates are slowly going to come down,” said Jeremy Schachter, branch manager at the Fairway Independent Mortgage Corporation. “I don’t anticipate rates being reduced much in 2024.”

Experts advise potential homebuyers to carefully analyze the costs of homeownership, including mortgage payments, to ensure affordability before making a decision.

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