"According to the latest Consumer Price Index released on Sept. 11, inflation rose 2.9% year-over-year in August, the highest measure since January. The unemployment rate has been climbing since June, reaching its highest level since 2021."
""Inflation data and broader economic signals will continue to play a big role, so I wouldn't expect rates to plummet - but a slow, steady decline could be on the table, which is good for buyers." Analysts are currently predicting that the Federal Reserve will vote to cut rates again in October and December, by another 25 basis points each time. If this happens, mortgage rates could fall by about 50 basis points by the end of 2025, possibly even below 6%."
On Sept. 17 the Federal Reserve voted to cut the federal funds rate by 25 basis points. Mortgage lenders anticipated the move and the average 30-year mortgage rate fell below 6.5% for the first time in 2025. Inflation rose 2.9% year-over-year in August, the highest since January, while the unemployment rate has climbed since June to its highest level since 2021. The August jobs report showed only 22,000 added jobs, well below projections, with federal government and wholesale trade especially weak. Analysts predict additional 25-basis-point cuts in October and December that could lower mortgage rates about 50 basis points by year-end 2025.
Read at SFGATE
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