Falling Mortgage Rates Are Near a 2025 Low—Should You Lock In Now or Wait for the Fed?

Core Insights - Mortgage rates are currently near their lowest level in 14 months, with the 30-year average dropping to 6.36% on Black Friday, just above the 2025 low of 6.35% recorded in late October [1][5] - Despite the Federal Reserve's expected quarter-point rate cut, there is no guarantee that mortgage rates will decrease, as they can move independently of the Fed's actions [6][8] Mortgage Rate Trends - The 30-year mortgage rates have seen fluctuations, with a low of 6.32% in early October last year, rising above 7% in early 2025 and May [2] - Recent trends show that mortgage rates can rise even after Fed rate cuts, as evidenced by the increase following the Fed's cuts in September and October [8][10] Implications for Borrowers - Borrowers are advised to consider locking in current rates, as waiting for potential further decreases may not be beneficial due to the unpredictability of mortgage rates [9][10] - The relationship between the federal funds rate and mortgage rates is complex, with fixed-rate mortgages influenced more by inflation, housing demand, and the bond market rather than directly by the Fed [7][8]