Mortgage rates drop to 3-year low ahead of Fed meeting

Group 1 - The current mortgage rate environment is similar to September 2024, with a significant chance of a Fed rate cut, which previously led to an increase in mortgage rates despite the cut [1] - The average rate on the 30-year fixed mortgage has decreased by 12 basis points to 6.13%, marking the lowest level since late 2022 [1] - Historical trends indicate that Fed rate cuts during recessionary periods tend to lower long-term rates, while cuts in non-recessionary environments do not have the same effect [3] Group 2 - Expectations are for at least a 25 basis point cut from the Fed, but this may not significantly impact long-term rates [3] - There is a possibility that the 10-year yield may sell off after the Fed announces the rate cut, as market behavior often involves buying on rumors and selling on news [4]