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According to the CME FedWatch Tool there is a 92.8% chance the Federal Reserve will cut interest rates at their September meeting. I think this was inevitable and they have been holding off for longer than they should have.
If interest rates are cut, it can take some time for mortgage rates to also decrease. Keep in mind that mortgage rates are tied to the yield on 10-year U.S. Treasury bonds. Other factors, like inflation and the economy, also play a role, but typically the bond market has the most influence.
I personally have seen buyers with interest rates as low as the high 5's to low 6's. With amazing credit, 20%+ down payments, and the right loan officer finding you the best deal, you should see similar numbers at this time.
If mortgage rates in NNJ fall below 6.5% on average, we are going to see a different housing market. People that have been waiting to sell will do so, and buyer's sitting on the sidelines will get back into the hunt.
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