Mortgage rates have been dropping, and have hit the lowest we have seen since May 2023.

According to Freddie Mac and reported by CNN Business, interest rates averaged 6.47% this past week for a standard 30-year fixed mortgage. The prior week, the average was 6.73%, so this is a pretty big drop.

Why is this happening?

The Fed has indicated that they expect to cut rates in September. Mortgage interest rates are generally only partially affected by the Fed interest rate fluctuations, but mortgage companies tend to take the possible cuts into consideration before they happen.

The lower job rate also contributed to the cut in interest rates.

What does this mean for Baltimore homebuyers? With lower interest rates, buyers could possibly be able to afford a little more of a house for approximately the same monthly payments.

If you are considering buying a Baltimore home, please contact me! I can put you in touch with a lender who can work with us to get you into your new home!