During the week of September 2, mortgage rates remained steady at 5.990% for the 30-year fixed mortgage, unchanged from the previous week. Many experts are expressing optimism about the potential for a rate cut in September.

Fred Bolstad, the head of retail mortgage operations at Bank of America, shared his insights, stating, “All signs indicate that the Federal Reserve is likely to lower short-term rates this month.” Meanwhile, Ralph DiBugnara, the founder of Home Qualified, believes the market is already anticipating this move, as evidenced by the recent decline in mortgage rates over the past few weeks. Many experts predict that if the Fed signals an acceleration of rate cuts to counteract previous hikes aimed at controlling inflation, we could see a continued decrease in mortgage rates throughout the fall of 2024 and into 2025.

Greg Sher, Managing Director at NFM Lending, noted, “History shows that once a rate cut begins, it can trigger a series of reductions over an extended period.” He emphasized that the initial cut would provide relief for those in the housing market or those looking to purchase homes.

However, there is still uncertainty regarding how significantly the market will rebound if the anticipated rate cuts do occur. The effect of lower rates on mortgage costs will be influenced by a range of factors, including inflation data and labor market performance. Moreover, the long-term direction of rates will ultimately depend on economic growth and future policy adjustments by the Federal Reserve.