Mortgage Rates See Biggest Weekly Drop Since July as Inflation Cools, Fed Hints at Rate Cuts
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Mortgage rates recently had the biggest single-week drop since July 2022, bringing rates down to 7.61%.
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The drop was driven by the U.S. Treasury's issuance update, the Fed striking a dovish tone, and slower job market data.
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Rates could stay paused if the Fed keeps rates unchanged at their December meeting.
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The Fed could cut the benchmark rate, which would lead to lower mortgage rates.
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If inflation cools to the Fed's 2% target, rate drops are likely. The Fed has already discussed potential 2024 rate decreases.