Mortgage Rates Slip Ahead of Fed Meeting

Lead: National mortgage rates edged lower Wednesday, with the average 30-year fixed mortgage falling to 6.24% as investors brace for a Federal Reserve rate cut expected at today’s policy meeting.

Nut Graf: Bankrate data show continued declines in long-term borrowing costs amid bond-market optimism over an imminent Fed easing, spurring both purchase and refinance demand and marking the lowest level in a year for several loan products.

Rates Tick Downward

• 30-year fixed: 6.24% (down 0.22 percentage points week-over-week)
• 15-year fixed: 5.47% (down 0.19 points)
• 5/1 ARM: 5.50% (down 0.09 points)

Market Reactions

Borrower activity has surged as homebuyers and homeowners rush to lock in lower rates. Refinancing applications rose sharply, with the Mortgage Bankers Association reporting a near-30% jump in weekly demand, the strongest since April 2022.

Fed Outlook and Treasury Yields

Treasury yields have retreated ahead of the Fed’s decision, reflecting more than 100% market odds of a quarter-point rate cut today. Analysts say expectations for easing monetary policy are already feeding through to mortgage pricing.

Advice for Borrowers

• Lock or float? Purchase buyers under contract benefit from locking rates now to secure certainty before any volatility.
• Refinancers may watch for potential further declines but should consider that major drops are unlikely in the short term.

Short paragraphs and bullet points allow readers to quickly grasp rate movements, market impacts, and borrowing strategies in the wake of the Fed’s widely anticipated policy shift.