Mortgage Rates Drop To Lowest Levels Since February 2023

UPDATE: On September 18, the Federal Reserve announced it is reducing its benchmark interest rate by 0.50 percentage points to a range of 4.75 to 5 percent.

Chicago home buyers soon may have a chance to lock in an affordable mortgage at 6 percent – or even the upper-5 percent bracket.

On September 12, Freddie Mac’s Primary Mortgage Market Survey reported that benchmark 30-year fixed home loan interest rates fell nationwide to an average of 6.2 percent, down from 6.35 percent a week earlier. A year ago, the 30-year fixed loan average was 7.18 percent.

Experts predict interest rates likely will continue to move lower this autumn. Forecasts say the Federal Reserve policy makers will cut the federal funds rate by 25 basis points at its mid-September meeting.

“Mortgage rates have fallen more than half a percent over the last six weeks and are at their lowest level since February 2023,” said Sam Khater, Freddie Mac’s Chief Economist. “Rates continue to soften due to incoming economic data that is more sedate. But despite the improving mortgage rate environment, prospective buyers remain on the sidelines, as they negotiate a combination of high house prices and persistent supply shortages.”

Freddie Mac also reported on September 12 that 15-year fixed mortgages averaged 5.27 percent, down from 5.47 percent a week earlier. A year ago, 15-year fixed loans averaged 6.51 percent.

The survey is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who place a 20 percent down payment and have excellent credit.

Don DeBat is co-author of Escaping Condo Jail, the ultimate survival guide for condominium living. Visit escapingcondojail.com. For more housing news, visit www.dondebat.biz. Don also is writing Chicago’s Game, a book on 16-inch softball.