Wed Dec 04 13:10:00 UTC 2024: ## Mortgage Rates Expected to Remain Stable in December Despite Fed Cuts

**NEW YORK, December 3, 2024** – While the Federal Reserve’s recent rate cuts have sparked hope among prospective homebuyers, mortgage rates are expected to remain relatively stable in December, according to several mortgage experts. Although the Fed projected further rate cuts throughout 2025, rising inflation and uncertainty surrounding the incoming administration’s economic policies are tempering expectations of significant changes in the mortgage market by year’s end.

Experts predict mortgage rates will hover between 6.875% and 7.125% this month. Aaron Gordon, a senior mortgage loan officer, notes that substantial rate decreases are unlikely until factors like increased unemployment, reduced government spending, or direct Fed intervention in the mortgage market materialize. Melissa Cohn, regional vice president of William Raveis Mortgage, agrees, citing the market’s ongoing digestion of the new administration’s policies and concerns about potential inflation as reasons for stability.

While a modest decline is possible if the employment sector weakens, most forecasts indicate the 30-year fixed rate will remain above 6% until 2025. Cameron Burskey, senior partner at Cornerstone Financial Services, suggests a modest decrease is possible but cautions against expecting significant reductions.

Despite the anticipated stability, even small rate decreases can significantly impact monthly payments and overall interest paid over the life of a loan. For instance, a $400,000 loan at 6.875% instead of 7.125% results in $67 lower monthly payments and almost $25,000 less in total interest.

Experts advise potential homebuyers to act now rather than waiting for potentially delayed or even adverse rate changes that could inflate home prices. They encourage buyers to secure the best possible financial position and shop around for rates this year. Refinancing remains an option for those who secure a mortgage now and wish to take advantage of future rate cuts.

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