Mortgage rates have decreased for the second straight week, according to Freddie Mac. The declines are relatively small, but every little bit helps for those wanting to buy a home before the end of 2025. So, will rates continue to go down this year? Are mortgage rates dropping? Yes, rates are down both weekly and annually. As of Dec. 4, Freddie Mac reported that the average 30-year fixed-rate mortgage rate had decreased by four basis points to 6.19%. The 30-year rate is now 50 basis points lower than ...

Mortgage rates continue to remain in a narrow range into 2026. The 30-year fixed mortgage rate has hovered within 11 basis points of its 2025 low since October 23. The national average 30-year rate is now 6.16%, according to Freddie Mac. So, what does this mean for the 2026 housing market? Will mortgage rates continue to go down? Are mortgage rates dropping? Yes, mortgage rates are generally lower. Weekly moves are small, but longer-term changes are more apparent. As of January 8, Freddie Mac reported ...

Mortgage rates have been fluctuating over the past month, but all the changes have been small. This week, interest rates have finally made a more noticeable dip. According to Freddie Mac, the 30-year fixed mortgage rate dropped by eight basis points this week to their lowest point in a year. Lower rates may leave you wondering: Is it a good time to buy a house? In this article: Are mortgage rates dropping? As of Oct. 23, Freddie Mac reported that the average 30-year fixed-rate mortgage rate had fallen b ...

After two consecutive weeks of increases, mortgage rates have finally decreased this week. The 30-year fixed rate is now two basis points lower than this time last year — but will they continue to trend downward? These small declines may leave you wondering: Is it a good time to buy a house? Learn how a government shutdown impacts mortgage rates. In this article: Are mortgage rates dropping? As of Oct. 9, Freddie Mac reported that the average 30-year fixed-rate mortgage rate had fallen by four basis poi ...

The 30-year fixed mortgage rate has inched up for three straight weeks, according to Freddie Mac. So, when will mortgage rates go down again, and will they do so in time for you to buy a home before the end of 2025? Are mortgage rates dropping? Yes and no. Short-term mortgage rates aren’t moving much, but annual rates have dropped. As of Nov. 20, Freddie Mac reported that the average 30-year fixed-rate mortgage rate had risen by two basis points to 6.26%. However, the 30-year rate is now 58 basis point ...

Mortgage rates may have decreased only slightly this week, but the decline marks a significant moment: The 30-year fixed mortgage rate has dropped to its lowest point in 2025. The national average 30-year rate is now 6.15%, according to Freddie Mac. So, what does this mean for the upcoming 2026 housing market? Will mortgage rates continue to go down? Are mortgage rates dropping? Yes, mortgage rates are dropping in general. Weekly declines are small, but longer-term changes are more drastic. As of Dece ...

Core Viewpoint - Recent indicators suggest that economic activity is expanding at a solid pace, with a stable low unemployment rate and elevated inflation levels [1][2]. Monetary Policy Decisions - The Federal Open Market Committee (FOMC) decided to maintain the federal funds rate target range at 4-1/4 to 4-1/2 percent, with a commitment to support maximum employment and return inflation to a 2 percent objective [3][8]. - The FOMC will slow the pace of decline in its securities holdings, reducing the monthly redemption cap on Treasury securities from $25 billion to $5 billion starting in April, while maintaining a cap of $35 billion on agency debt and mortgage-backed securities [3][8]. - The interest rate paid on reserve balances will remain at 4.4 percent, effective March 20, 2025 [8]. Economic Monitoring - The FOMC will continue to assess incoming data and the evolving economic outlook, being prepared to adjust monetary policy if risks emerge that could impede the attainment of its goals [4][5]. - The assessments will consider a wide range of information, including labor market conditions, inflation pressures, and international developments [5]. Voting and Consensus - The monetary policy action was supported by all voting members except Christopher J. Waller, who preferred to maintain the current pace of decline in securities holdings [6].

Core Insights - The relationship between inflation and mortgage rates is complex, with inflation indirectly influencing mortgage interest rates through the Federal Reserve's policy adjustments [2][11][17] - The average 30-year mortgage rate in Q2 2025 was 6.79%, slightly down from 6.83% in Q1 2025, indicating fluctuations tied to inflation and Federal Reserve policies [4][19] - The Federal Reserve aims to maintain a healthy inflation rate of approximately 2% to ensure economic stability, adjusting the federal funds rate as necessary [7][11] Inflation Overview - Inflation is defined as the general rise in the costs of goods and services over time, measured primarily by the Consumer Price Index (CPI) and the Personal Consumption Expenditures price index (PCE) [3] - The CPI for August showed a 0.4% increase, with a year-over-year rise of 2.9%, aligning with expectations [12][14] Federal Reserve's Role - The Federal Reserve adjusts the federal funds rate to manage inflation, which in turn affects consumer borrowing rates, including mortgages [11][18] - A rise in inflation typically leads the Federal Reserve to increase the federal funds rate, resulting in higher interest rates for consumer loans [18] Housing Market Impact - Inflation can lead to increased housing prices due to rising costs of materials and labor, affecting home buyers negatively [15][20] - Higher inflation may also result in increased closing costs and third-party service fees associated with home purchases [16] Future Projections - Mortgage rates are expected to remain relatively flat in the near term, with forecasts suggesting an average rate of around 6.5% by the end of 2025 [19] - Homeowners generally benefit from inflation as it increases home equity, while home buyers face challenges from higher mortgage rates and home prices [20]

Many factors influence the interest rate you get on a mortgage loan, including your credit history and the size of your down payment. Average loan rates across the country also play a role — and those tend to rise and fall with inflation. The September Consumer Price Index (CPI), a key measure of inflation, showed that prices rose within expectations. So, how will that affect home loan rates? Learn more: How are mortgage rates determined? In this article: Quick recap: What is inflation? Before understa ...

Overview of the Federal Open Market Committee (FOMC) - The FOMC is a crucial part of the Federal Reserve System, which is the central bank of the United States [2] - The committee is responsible for setting monetary policy to ensure economic stability, including maximum employment and stable prices [3] Monetary Policy Tools - The FOMC controls open market operations (OMOs), which involve the buying and selling of government securities to regulate the money supply [4] - The federal funds rate, influenced by the FOMC, is a key interest rate that affects borrowing costs and overall economic activity [5][6] FOMC Membership and Meetings - The FOMC consists of 12 members, including seven members from the Board of Governors and the president of the Federal Reserve Bank of New York, along with four rotating Reserve Bank presidents [7][8] - The committee meets eight times a year to discuss economic conditions and decide on monetary policy actions [13] Impact on the Economy - Changes in the federal funds rate directly affect interest rates on loans and credit cards, influencing borrowing costs for consumers and businesses [10] - The FOMC's decisions also impact inflation management, job stability, stock market performance, and home prices [11][12]