The mortgage rates have been somewhat interesting over the past 60 days. Mortgage rates were dropping in August even prior to the Federal Reserve announcing the rate cut of 50 basis points (0.50%) on September 18th. Since that cut, mortgage rates have steadily increased, possibly due to uncertainty about the presidential election and other economic factors such as inflation and consumer confidence. On November 7th, the Federal Reserve cut rates again by 25 basis points (0.25%), bringing the target range down to 4.5% – 4.75%. This is the lowest we have seen since the spring of 2023. Where will the federal rates go from here? In a recent meeting in Dallas, Federal Reserve Chair Jerome Powell said that based on current economic factors, there is no hurry in lowering rates. The Federal Reserve will meet again on December 17-18th.
It is important to note the the federal rates do not directly impact mortgage rates. They certainly have an impact, but mortgage rates also respond almost daily to factors such as reports on inflation, job growth, and other economic factors.