Despite the Federal Reserve's recent interest rate cut, mortgage rates aren't guaranteed to fall further. While the average 30-year mortgage rate has decreased to 6.35%, its lowest point in almost a year, several factors influence rates beyond the Fed's actions, including inflation and the 10-year Treasury yield. Economists predict rates may decline slightly but remain above 6% this year. The housing market, currently sluggish, could see some improvement with lower rates, but affordability challenges persist due to high home prices.

Prepared by Christopher Adams and reviewed by editorial team.