"These relatively steady rate movements seem to be in line with market expectations following the Federal Reserve's 25-bps cut to benchmark rates late last month. The cut was widely anticipated and baked into the rates offered by most mortgage lenders well in advance. We've seen this rhythm before: rates fall in anticipation of a Fed cut, rise slightly following the announcement due to cautious messaging, and then stabilize or trend down again as economic data unfolds, said Samir Dedhia, CEO of One Real Mortgage."
"In the run-up to last month's Fed meeting, market observers gave strong odds on another cut to the federal funds rate in December. But fewer bets are being placed today on that side of the roulette wheel. The CME Group's FedWatch tool shows that opinions are equally divided as 50% of interest rate traders surveyed say there will another 25-bps cut next month, while the other 50% predict no changes."
Rates for 30-year jumbo loans and 30-year FHA-backed loans averaged 6.18% and 6.13%, respectively, and have risen only slightly since early November. A 25-bps Federal Reserve cut late last month was widely anticipated and largely priced into mortgage offers. Rate behavior often involves declines before a Fed cut, modest increases after cautious Fed messaging, and stabilization or renewed declines as economic data arrives. With one Fed meeting left in 2025, markets are closely watching inflation and labor data. The CME FedWatch tool shows traders split 50/50 on another 25-bps cut in December. Fed Governor Christopher Waller endorsed further cuts and said policymakers have sufficient data despite the recent government shutdown. If benchmark rates fall another quarter-point, they would reach their lowest range since November 2022.
Read at www.housingwire.com
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