December is expected to see mortgage interest rates holding steady, with the 30-year fixed-rate home loan staying in the range of 6.75% to 7%.
November displayed stability in mortgage rates, except for some fluctuations post-election. Economic indicators remained as anticipated, with the inflation rate meeting expectations. The Federal Reserve continued on its projected path, leading to no significant changes in rates.
Looking ahead to December, a similar trend is expected with consistent inflation indicators and an uneventful Fed announcement on Dec. 18. Some uncertainty loomed in late November regarding the Fed’s actions, but clarity is anticipated in the first half of December.
Predictions from Others
Fannie Mae and the Mortgage Bankers Association foresee mortgage rates remaining stable in December, with expectations that the 30-year mortgage will average 6.6% in the final quarter of 2024. This would translate to an average rate of around 6.75% in December, aligning with November figures.
Some analysts suggest a potential decrease in rates for December, particularly if economic data hints at a weakening economy, such as a lower-than-expected inflation rate.
Lawrence Yun of the National Association of Realtors speculates that multiple cuts in short-term interest rates by the Fed could lead to a decline in mortgage rates, although the timing remains uncertain.
November Recap
Contrary to expectations, November witnessed fluctuations in mortgage rates, with the 30-year mortgage averaging 6.81% in Freddie Mac’s weekly survey, up from 6.43% in October, following the swift resolution of the presidential election.
Looking Forward to 2025
The upcoming winter housing market may experience a slowdown, with a new presidential administration set to take office on Jan. 20 and potential expectations of declining mortgage rates.
“Many individuals might delay purchasing homes until 2025 for increased certainty and optimism about lower rates,” suggests Lisa Sturtevant, chief economist for Bright MLS.