30-Year Mortgage Rates Dip to 6.21% Amid Fed Rate-Cut Anticipation

Lead U.S. 30-year mortgage rates fell to an average of 6.21% on Wednesday, the lowest level in nearly a year, driven by expectations of a Federal Reserve rate cut this week.

Nut Graf With the Fed meeting concluding today and markets braced for a quarter-point reduction, Treasury yields eased, translating into lower borrowing costs for homebuyers and refinancers.

Market Reaction Following disappointing job growth data and persistent inflation above the Fed’s 2% target, traders priced in roughly a 90% probability of a September federal funds rate cut. As a result, the average 30-year fixed mortgage rate declined by five basis points from Tuesday.

Subhead: Comparative Rates

• 30-year fixed conventional: 6.208% (down 5 bps)
• 30-year jumbo: 6.557% (down 12 bps)
• 30-year FHA: 6.020% (down 3 bps)
• 30-year VA: 5.724% (down 4 bps)

Subhead: Impact on Borrowers

• Homebuyers gain modest relief on monthly payments; every 10-basis-point drop saves roughly $17 per $100,000 borrowed.
• Refinancing applications are expected to surge as homeowners rush to lock in lower rates before any future increases.

Subhead: Outlook Economists warn that any further meaningful decline in mortgage rates depends on sustained softening in inflation and confirmation of Fed cuts. If inflation remains sticky, the Fed could pause future easing, keeping rates in the mid-6% range for the foreseeable future.