Mortgage Interest Rates Forecast

Fixed mortgage rates slipped to 6.08% APR this week as investors grew hopeful the Federal Reserve might cut rates again in December. With few new economic reports available, markets instead reacted to mixed signals from Fed officials — including a hint from New York Fed President John Williams that more easing could be on the way — which was enough to push mortgage rates downward.

It’s not a peak season for homebuying, but some homeowners are using the dip to refinance. Many are aiming for lower monthly payments, while others are tapping their home equity for renovations as they choose to stay put longer. This small rate break is giving homeowners a chance to improve their finances heading into the holidays.

»MORE: Mortgage refinance calculator

December Mortgage Rates Forecast

All eyes are on whether central bankers will continue cutting rates or stand pat when they meet again in December. The Fed aims to balance two goals: protecting jobs and keeping inflation in check. A modest rebound in hiring may ease concerns about unemployment, and inflation remains slightly above the Fed’s target. That means another rate cut is possible but not guaranteed — and mortgage rates could keep drifting up and down.

»MORE: How the Fed Affects Mortgage Rates