The Daily Interview: What the Fed Cuts Mean for Mortgage Rates

Don't expect further cuts in the Federal Reserve interest rate to mean mortgage rates are going further down, too.

Lawrence Yun Forecast Economist National Association of Realtors

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Lawrence Yun, forecast economist at the National Association of Realtors, says one-year adjustable rate mortgages might continue to fall slightly below 6%. But at 7%, the 30-year fixed-income mortgage rate is about as low as it's going to go.

While it might seem unfair that banks are unwilling to pass a full 200 basis-point rate cut or any additional cuts onto homeowners, Yun says that banks already lowered 30-year rates from 8.5% to 7% last fall and are reluctant to lower them any further because of inflationary fears. ...