NASHVILLE, Tenn. (WTVF) — If you're considering buying a home right now, you're probably watching interest rates very closely.
The Federal Reserve cut interest rates for the third time this year on Wednesday, taking the rate down a quarter of a percent.
While that could help, it won’t necessarily translate to making home mortgages any more affordable.
Forrest Hewes, senior loan officer with Community Mortgage Advisors in Nashville, said his office starts to get calls anytime the Fed cuts rates.
"We get a few calls. People think that it's all tied together. When the Fed changes any kind of rate," Hewes said.
While an interest rate cut from the Fed could impact mortgages down the line, Hewes said the real marker to look for is the bond market.
"The bond markets are what drive the mortgage rates, specifically the 10-year treasury yield," Hewes said.
Beyond that, Hewes said factors that determine home mortgage rates include interest from investors looking to buy mortgage-backed securities, inflation data, and the jobs reports.
He said right now, some of that data is still delayed due to the government shutdown this fall.
"The rates have been sort of sluggish in their movements as a result of that," Hewes said.
According to the Primary Mortgage Market Survey, mortgage rates are sitting a little above 6% now.
They have come down from around 7% at the beginning of the year.
Hewes said overall rates most likely won't change drastically in the near future, so waiting for them to go down may not be worth it if you’re holding out to save a bit of money.
"If you're comfortable with the payment and you like the house that you're looking at, get the house," Hewes said.
This story was reported on-air by Robb Coles and has been converted to this platform with the assistance of AI. Coles verifies all reporting on all platforms for fairness and accuracy.
Do you have more information about this story? You can email me at robb.coles@newschannel5.com.
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