Summary
The Federal Reserve cut its key interest rate for the second time this year, aiming to potentially lower mortgage rates. The central bank's decision comes amid limited data due to a government shutdown. Mortgage rates, while somewhat stable, could see changes depending on future economic developments and Fed actions.
Key Facts
- The Federal Reserve cut its interest rate by a quarter percentage point to a range of 3.75% to 4%.
- The decision happened with limited economic data available due to the ongoing U.S. government shutdown.
- The average 30-year fixed-rate mortgage is currently at 6.19%, down from earlier highs.
- Experts are divided on whether mortgage rates will continue to fall by the end of the year.
- The Federal Reserve faces internal disagreement on future rate cuts.
- The next Fed meeting will occur in approximately six weeks.
- Concerns include budget deficits and inflation, which might influence mortgage rates' future direction.
