Fed Cut Leads to Lower Mortgage Rates

Mortgage rates in the U.S. are experiencing a notable decline following the Federal Reserve's recent 0.5% rate cut, which marks its first reduction in over four years. The average 30-year fixed mortgage rate has decreased to around 6.18%, with refinancing activity increasing as homeowners take advantage of lower rates to reduce their monthly payments. Despite these declines, existing home sales remain sluggish, hitting a multi-decade low due to persistently high home prices and low inventory. Additionally, new green mortgage options are being offered by Santander for energy-efficient homes, providing discounted rates for those with higher EPC ratings. Nevertheless, owner-occupiers are falling behind on their mortgages at higher rates than investors, highlighting ongoing challenges in the housing market.