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Weekly Mortgage Rates Ease as Fed Cut Seems Likely
The average 30-year fixed mortgage rate dropped to 6% as labor-market softness and expectations of a Fed cut push rates down despite fewer refinance applications.
- In the week ending Dec. 4, the average 30-year fixed mortgage fell eight basis points to 6% APR, according to NerdWallet and Zillow as U.S. mortgage markets weighed a possible Fed rate move.
- As forecasters price in a Dec. 9 cut, most expect a 25 basis point federal funds rate reduction, which sets the tone for mortgage pricing despite the Federal Reserve not setting rates directly.
- Mortgage demand showed an odd mismatch when refinance applications fell despite easing rates, and ADP reported private companies, mostly small businesses, cut 32,000 jobs in November.
- Markets eased as data signaled softer labor market conditions, but officials warn cutting too fast soon could reheat inflation and overstimulate the economy, complicating timing decisions.
- Fed minutes revealed internal debate among officials, showing uncertainty ahead, and NerdWallet provided the rate data used here, defining a basis point as one one-hundredth of a percentage point.
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Weekly Mortgage Rates Ease as Fed Cut Seems Likely
Have you ever shaken a wrapped present to guess what’s inside? Well, that's what happened to mortgage rates this week. They bounced around as markets wondered if the Federal Reserve will give us a rate cut at its next meeting.The…
Coverage Details
Total News Sources25
Leaning Left3Leaning Right6Center6Last UpdatedBias Distribution40% Center, 40% Right
Bias Distribution
- 40% of the sources are Center, 40% of the sources lean Right
40% Right
L 20%
C 40%
R 40%
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