Mortgage rates hold steady in December as economic factors influence trends

Mortgage rates on December 1, 2024, remain in the mid-6% range, with 30-year rates averaging around 6.50%. Rates have increased recently due to strong economic data and concerns about inflation, particularly with the upcoming presidential administration. Fifteen-year mortgage rates are slightly below 6%, while adjustable-rate mortgages (ARMs) are higher than fixed rates. FHA loans are also seeing increased rates, but they remain accessible for low-income and first-time buyers. Experts suggest that mortgage rates may not drop significantly this year, despite a recent slowdown in inflation. Home prices are expected to rise due to low supply, with projections indicating increases of around 5.8% in 2024.