August 2024 Mortgage Update: Rates Trending Downward Amid Economic Shifts and New Housing Initiatives
As of August 2024, residential mortgage rates have shown some fluctuations but are generally trending downward. The average rate for a 30-year fixed mortgage is currently around 6.47%, which is a decrease from recent weeks. This drop is partly due to expectations that inflation is slowing down, which might lead the Federal Reserve to lower interest rates soon. If this happens, mortgage rates could continue to decline, providing more affordability for homebuyers.
New Initiative to Tackle Affordable Housing & Easing Mortgage Rates
In terms of mortgage programs, the Biden administration is actively working to address the affordable housing crisis. A new initiative, known as the Treasury-HUD rate collar, is designed to reduce the costs associated with constructing or rehabilitating affordable housing. This program, specifically aimed at Housing Finance Agencies, could potentially lead to the creation of tens of thousands of new affordable rental homes over the next decade. Overall, while current mortgage rates are still relatively high compared to historic lows, they are showing signs of easing, which could provide more opportunities for both new buyers and those looking to refinance.
Looking to take advantage of the current market trends? Contact Funding Resources LLC today to explore your mortgage options and secure financing for your next property.