The Federal Reserve is widely expected to lower its benchmark interest rate this week for the first time since December of 2024. A rate cut would give Americans a sliver of relief on a wide range of loans, but would it bring down mortgage rates?

Average rates for a 30-year fixed-rate mortgage fell to 6.35% this week , its lowest level in nearly a year, as financial markets have preemptively priced in a Fed cut when policymakers meet Sept. 16-17.

Borrowing costs on 15-year fixed-rate mortgages — popular with homeowners refinancing their home loans — also fell. The average rate slipped to 5.5% from 5.6% last week. A year ago, it was 5.27%.

With that in mind, experts say homeowners should not expect an immediate drop in mortgage costs should the central bank officially cut its rate on T

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