Could a Fed Rate Cut Help Mortgage Rates Fall? Today's Mortgage Rates, Dec. 17, 2024

In 2024, prospective homebuyers watchedmortgage ratesrise, fall and then rise again.

Many hoped the housing market would open up when theFederal Reservefinally began lowering interest rates in September.

Mortgage rates surged over the past two months but got off to a better start in December.

Experts say it could be the last cut we see for a while.

For a look at mortgage rate movement over the past four years, see the chart below.

Will mortgage rates drop this year?

Where mortgage rates go next depends on how the economy performs in the coming weeks and months.

Robust economic data typically translates to higher mortgage rates.

The opposite is true when we get weaker data, like rising unemployment or cooling inflation.

In our2025 mortgage forecast, experts outlined a rough range for mortgages depending on potential economic outcomes.

In that scenario, mortgage rates can easily remain elevated or move above 7%.

Here’s a look at where some major housing authorities expect average mortgage rates to land.

Each mortgage has a loan term, or payment schedule.

With a fixed-rate mortgage, the interest rate is set for the duration of the loan, offering stability.

The 30-year fixed mortgage rate average is 6.79% today.

A 30-year fixed mortgage is the most common loan term.

Today, the average rate for a 15-year, fixed mortgage is 6.11%.

A 5/1 ARM has an average rate of 6.43% today.

But you could pay more after that period, depending on how the rate adjusts annually.

Though mortgage rates and home prices are high, the housing market won’t be unaffordable forever.