Mortgage rates plunge to 11-month low on Fed rate cut hopes, and many lenders may quote in the high 5% range

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• Bond yields tumbled as the weaker-than-expected jobs report raised expectations for rate cuts from the Federal Reserve. That sent the average rate on the 30-year fixed mortgage to the lowest level since October 2024. The steep drop could help shake up the housing market, which has seen a dearth of activity amid high home prices and borrowing costs.

After a disappointing spring and summer, the housing market could start to heat up as fall approaches with the latest plunge in mortgage rates.