{"id":22651,"date":"2025-12-17T20:37:21","date_gmt":"2025-12-17T20:37:21","guid":{"rendered":"https:\/\/budgetadirect.com\/?p=22651"},"modified":"2025-12-17T20:37:22","modified_gmt":"2025-12-17T20:37:22","slug":"mortgage-rates-dip-following-fed-cut","status":"publish","type":"post","link":"https:\/\/budgetadirect.com\/?p=22651","title":{"rendered":"Mortgage Rates Dip Following Fed Cut"},"content":{"rendered":"
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\n Image by PM Images\/Getty Images; Illustration by Hunter Newton\/Bankrate\n <\/p>\n<\/p><\/div>\n

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\n Mortgage rates fell this week, with the 30-year fixed rate averaging 6.30%, down from 6.34% the previous week, according to Bankrate\u2019s latest lender survey.<\/p><\/div>\n<\/p><\/div>\n

Current mortgage rates<\/h2>\n
\n\n\n\n\n\n\n\n
Loan type<\/th>\nCurrent<\/th>\n4 weeks ago<\/th>\nOne year ago<\/th>\n52-week average<\/th>\n52-week low<\/th>\n<\/tr>\n<\/thead>\n
30-year<\/td>\n6.30%<\/td>\n6.37%<\/td>\n6.91%<\/td>\n6.69%<\/td>\n6.25%<\/td>\n<\/tr>\n
15-year<\/td>\n5.56%<\/td>\n5.60%<\/td>\n6.13%<\/td>\n5.90%<\/td>\n5.50%<\/td>\n<\/tr>\n
30-year jumbo<\/td>\n6.50%<\/td>\n6.50%<\/td>\n6.74%<\/td>\n6.92%<\/td>\n6.31%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

The 30-year fixed mortgages in this week\u2019s survey had an average total of 0.32 discount and origination points. Discount points are a way to lower your mortgage rate, while origination points are fees lenders charge to create, review and process your loan.<\/p>\n

\n \"couple<\/p>\n
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\n Shop smarter for mortgage rates
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Bankrate connects you to the latest lender offers, tailored to you. Find your low rate today.<\/p>\n

Explore mortgage rates<\/p><\/div>\n<\/div>\n

Monthly mortgage payment at today\u2019s rates<\/h2>\n

The national median family income for 2025 is $104,200, according to the U.S. Department of Housing and Urban Development, and the median price of an existing home sold in October 2025 was $415,200, according to the National Association of Realtors. Based on a 20% down payment and a 6.30% mortgage rate, the monthly payment of $2,056 amounts to about 24% of the typical family\u2019s monthly income.<\/p>\n

\u201cWith more housing inventory coming online and home prices starting to level off, this remains a promising environment for those looking to buy or refinance,\u201d says Samir Dedhia, CEO of One Real Mortgage.\u00a0\u00a0<\/p>\n

What will happen to mortgage rates in 2026?<\/h2>\n

The Federal Reserve cut rates last week for the third time this year, trimming its benchmark rate by a quarter-point in its final meeting of 2025. Even though that cut was widely expected, mortgage rates remain above their 2025 lows, according to Bankrate\u2019s national survey of lenders. However, they\u2019re not too far off the recent low of 6.25%.<\/p>\n

Fixed mortgage rates are not set directly by the Fed but by investor appetite, particularly for 10-year Treasury bonds. When there\u2019s uncertainty in the market, investors buy Treasury bonds, which in turn drives yields \u2014 and, often, mortgage rates \u2014 downward.<\/p>\n

But don\u2019t expect significant reductions in mortgage rates: Most housing economists expect rates to hold above 6%. \u201cOur forecast is for mortgage rates to stay within a fairly narrow range over the next few years,\u201d says Mike Fratantoni, chief economist at the Mortgage Bankers Association.<\/p>\n

Meanwhile, the U.S. economy seems to be losing steam. President Donald Trump\u2019s tariff policies have been blamed for an increase in inflation, which moved up to 3% in September, making little progress toward the Fed\u2019s inflation target of 2%. The 10-year Treasury yield was at 4.15% as of Wednesday afternoon, down from 4.17% a week earlier.<\/p>\n