According to data analyzed by MarketWatch Guides, the 30-year fixed-rate mortgage has remained close to 7% for the past two weeks. However, recent economic news suggests that rates may continue to decline. The Federal Reserve, in their last meeting of 2023, decided to keep interest rates steady and hinted at multiple rate cuts in 2024. Mortgage rates typically follow the yield on 10-year Treasury bonds rather than the federal funds rate, but economists predict that mortgage rates will continue to fall next year if inflation cools as forecasted by the Fed. The Mortgage Banker Association estimates that the 30-year fixed-rate mortgage will reach 6.1% by the end of next year, nearly a full percentage point lower than the current rate. As of Tuesday, December 26, 2023, the average mortgage rates are as follows: 30-year fixed mortgage rate – 7.09%, 15-year fixed mortgage rate – 6.29%, 5/6 ARM mortgage rate – 6.89%, and jumbo mortgage rate – 7.02%. These rates are subject to change based on data from Curinos, LLC.
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