Jun 7, 2024 - Economy

Mortgage rates dip below 7% as optimism grows around Fed cut

The line chart shows the fluctuation in the average U.S. 30-year fixed mortgage rate from June 2, 2022, to June 6, 2024. The rate initially increases from 5.09% to a peak of 7.08% in late 2022, then decreases to a low of 6.09% in early 2023, before rising again and now at 6.99%
Data: Freddie Mac; Chart: Axios Visuals

The average rate on the 30-year fixed mortgage fell back under 7% this week, per Freddie Mac.

Why it matters: The dip is a reflection of renewed optimism that the Federal Reserve will cut rates. But rates are still very high, a continuing turn-off for would-be buyers.

Zoom in: Yields on 10-year Treasury bonds, which are tied to mortgage rates, dipped this week in the wake of what Axios' Neil Irwin calls "a drumbeat of data points" that seem to show the economy is cooling.

  • Still, the Fed isn't likely to announce a rate cut at its policy meeting next week.

The bottom line: Homebuyers will have to wait a while for the rate relief to come.

Go deeper: Mortgage rates reach new high for 2024

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