30-Year Mortgage Rates Fall Again

Mortgage Rates Overview - The current average rate for a 30-year fixed mortgage is 6.87%, with a daily decrease of 0.06% [1][2] - The Freddie Mac average for 30-year mortgages has seen fluctuations, recently dropping from a peak of 7.79% in October 2023 to the current rate [2][10] - The Investopedia average differs from Freddie Mac's due to its daily calculation method, providing a more immediate reflection of rate changes [3] Rate Changes and Influences - Various loan types show different rates, with the FHA 30-Year Fixed at 7.25% and VA 30-Year Fixed at 6.43% [1] - The Federal Reserve's bond-buying policies significantly influenced mortgage rates, particularly during the pandemic [7][9] - The Fed's tapering of bond purchases and subsequent rate hikes have led to a dramatic increase in mortgage rates over the past two years [10][11] Future Rate Expectations - The Fed has maintained a peak federal funds rate since July 2023, with recent announcements indicating potential rate cuts in the future [11][12] - The Fed's quarterly rate forecast suggests limited rate cuts in the coming year, with expectations for multiple rate-hold announcements [12] Rate Calculation Methodology - The national averages provided assume an 80% loan-to-value ratio and a credit score range of 680-739, which may differ from advertised teaser rates [13]