"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 average rate on the 30-year fixed-rate mortgage fell eight basis points to 6% APR in the week ending Dec. 4, according to rates provided to NerdWallet by Zillow. A basis point is one one-hundredth of a percentage point."
"Even if a December rate cut feels fairly certain, not everyone at the Fed is enthused about it. If the committee's last meeting minutes are any indication, there's sure to be some heated debate. And a reminder: The Federal Reserve doesn't set mortgage rates directly, but its federal funds rate can set the tone for what mortgage rates will do."
Mortgage rates bounced this week as markets weighed the possibility of a Federal Reserve rate cut. The average 30-year fixed rate fell eight basis points to 6% APR for the week ending Dec. 4, per data from Zillow via NerdWallet. Incoming data showed some labor-market softness, prompting forecasters to expect a 25-basis-point reduction at the Dec. 9-10 Fed meeting. Fed deliberations remain divided, with minutes suggesting debate among officials. The Fed's federal funds rate influences mortgage rates but does not set them directly. Refinancing applications declined as borrowers awaited lower rates. Policymakers face a trade-off between stimulating employment and avoiding renewed inflation.
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