Do mortgage rates drop in a recession?

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Question: Do mortgage rates drop in a recession?

Answer:

Yes, mortgage rates often drop during a recession.

When the economy slows down, the Federal Reserve usually lowers interest rates to stimulate economic activity. This can lead to lower mortgage rates, making borrowing cheaper for consumers.

However, rates don’t always drop immediately or uniformly, as other factors like inflation, demand for loans, and lender policies can influence the final rate you might get.

So, while a recession might generally lead to lower mortgage rates, it’s not a guarantee.