By Jeff Ostrowski, Bankrate.com

Nearly everyone thinks the Federal Reserve will cut interest rates this week. That sentiment has translated to falling mortgage rates. Last week, the average 30-year fixed rate dropped to 6.38%, according to Bankrate’s national survey of lenders. Rates haven’t been this low in nearly a year.

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“These lower rates reflect growing market optimism that the Federal Reserve is likely to cut rates at its next meeting on Sept. 17, with further cuts expected through the end of the year,” says Samir Dedhia, CEO of One Real Mortgage.

An important note: Mortgage rates are dictated not by central bank policy but by a complex array of factors, including 10-year Treasury yields and demand for mortgages among the investors who buy home loans. Reflecting s

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