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Interest rates keep going down but mortgage rates aren't following suit. Here's why

The average 30-year mortgage rate remains high despite the Federal Reserve again dropping its key interest rate.

CHARLOTTE, N.C. — The Federal Reserve keeps dropping key interest rates, but mortgage rates are actually going up, leaving many prospective homeowners facing a harsh reality. 

As mortgage rates continue to climb, potential buyers are starting to accept they won't come down for a while. Let's connect the dots. 

The average 30-year mortgage rate is sitting near 6.8% this week. In fact, the average rate has been above 6% for the last two years. 

So what's keeping rates that high? Experts blame a combination of better-than-expected growth and uncertainty over the economic impact of another Trump administration. 

And while the Federal Reserve has started easing interest rates, those cuts typically only impact long-term lending, like car loans or credit card debt. Mortgages are more closely tied to government bonds. 

Experts say mortgage rates could push even higher if the economy stays strong. Because of that, many economists expect the housing market to remain quiet through 2025. 

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