What happened to mortgage rates this week:
The Freddie Mac 30-year fixed mortgage rate edged down 3 basis points this week, to 6.23%, as delayed economic data trickles in and a divided Fed leans toward a December cut. After the delayed September jobs report delivered mixed signals, several Fed key officials hinted they would back another rate cut even despite some likely dissent on the committee.
What it means for the housing market:
A further cut, which traders think will happen with 80% probability, could bring mortgage rates near 2025-lows just as the year comes to a close. This would give homebuyers something to be thankful for heading into 2026, while potentially buoying a housing market which has seen some light tailwinds of late: pending home sales picked up 1.9% in October; existing home sales have notched 4 straight months of annual growth; and builders have begun to offer more competitive pricing and financing.
With the fall homebuying season winding down after Thanksgiving, all eyes will turn back to the Fed and the eventual release of backlogged government data. Much of where the mortgage and the housing market is headed depends on the inflation and labor market outlook. If inflation cools, the labor market rallies, and the Fed delivers another cut, the housing market could enter 2026 with real momentum.