Mortgage rates are driven by investor expectations and shifts in bond yields. Overall, investors care more about the Fed's future outlook for rate cuts than one individual cut. Gi

The Federal Reserve implemented its third consecutive rate cut of 2024 today (December 18), reducing its benchmark federal funds rate by 25 basis points. This decision lowered the Fed's benchmark rate to a range of 4.

In remarks at a postmeeting press conference on Wednesday, Fed Chair Jerome Powell said that policymakers are now equally attuned to risks from both sides of the mandate, and would proceed cautiously with future rate cuts to avoid reigniting rapid inflation.

Each point costs 1% of the purchase price of a home and usually knocks the rate down by 0.25%. On a $400,000 home, you'd pay $4,000 for one discount point. The lender may even allow you to buy four mortgage points to lower the rate from 7% to 6%, though you'd have to shell out $16,000 to get there.

The U.S. Federal Reserve has issued their final rate cut of 2024, saying that what happens next year will depend on the actions and policies of the incoming Trump administration. Some at the reserve has signaled that the rate cuts will slow down as business leaders say inflation is not coming down enough.

Mortgage rates ticked up from 6.6% last week to 6.72% for a 30-year fixed home loan for the week ending Dec. 19, according to Freddie Mac. “This week, mortgage rates crept up to a similar average as this time in 2023,