The central bank cut rates last month but saw risks of somewhat firmer price pressures this year due to potential tariff increases by President-elect Trump.

The Federal Open Market Committee is highly likely to hold interest rates at their current level at their next meeting, but cuts later in 2025 remain on the table.

Federal Reserve officials at their meeting Dec. 17-18 expected to dial back the pace of interest rate cuts this year in the face of persistently elevated inflation and the threat of widespread tariffs

“Even by the end of next year, it’s hard to see sub 6 percent mortgage rates,” said Mark Fleming, chief economist at First American, which predicts the average rate on a 30-year mortgage will range between 6% and 6.5% next year, per a report from The Hill.

The mortgage rate environment has undergone significant shifts in recent years, though, making it more difficult to determine what the time is right to make a move. While it was e

Rates on 30-year mortgage refinance loans edged up another 3 basis points Monday, pushing the average up to 7.15%. That's just 4 basis points under the 7.19% reading notched on Dec. 24, which was the most expensive level for 30-year refi rates since late July.