Mortgage News-Another Rate Cut
In a widely anticipated move, the Federal Reserve delivered another quarter-point cut to the Fed Funds rate at its December meeting, marking the third consecutive cut since September. This was yet another split decision, highlighting the tug-of-war between limiting inflation and boosting the job market. Jobs data showed a weakening labor market with a net job loss in October and November and the November unemployment rate at 4.6%.
November's inflation rate came out at a lower than expected 2.7% but economists were quick to note that the lower number was likely the result of distortions related to the government shutdown.
What will the housing market look like in 2026? The consensus seems to be landing at a median home price increase of 1% nationally with an increase in inventory. Mortgage rate estimates are in the low 6's. I've seen a number of existing-home sales projected to rise anywhere from NAR's(National Association of Realtors) 14% down to 3% from Redfin, which is calling it the "Great Housing Reset". Rather than an outright recession or widespread price correction, gradual market normalization is expected.
Hope you have a wonderful Holiday Season and a great 2026 ahead!
See local stats below for more insights into your local market.
Weekly national mortgage rates for conforming loans, top credit scores:
30 yr. fixed rate | 6.32 | ||
15 yr. fixed rate | 5.77 | ||
