30-Year Mortgage Rate Drops to 6.09% After Fed Rate Cut

Published On Sep 19, 2024, 12:02 PM

Mortgage rates in the U.S. have declined to 6.09% as of September 19, 2024, following a Federal Reserve decision to cut its benchmark interest rate by half a percentage point. This is the lowest rate since February 2023 and reflects a broader trend of falling rates that could potentially stimulate interest in buying, selling, and refinancing homes. However, despite the drop, current mortgage rates remain significantly higher than those during the pandemic, which may deter some homeowners from selling. Economists anticipate that falling rates will eventually increase housing market activity, although home prices remain a hurdle for first-time buyers.

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Stock Forecasts

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Positive

With declining mortgage rates encouraging potential buyers and sellers to re-enter the market, companies connected to residential real estate, such as real estate investment trusts (REITs) and home builders, may see increased interest and activity. First-time buyers, although price-sensitive, could be supported by lower financing costs, leading to a more favorable environment for housing-related stocks.

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Negative

On the other hand, existing homeowners may continue to remain inactive due to high current mortgage rates compared to past rates. This reluctance can negatively impact companies dependent on available housing inventory, which could affect their stock performance.

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