Mortgage rates have shot back up after declining earlier this month following the Federal Reserve’s change to a slower, more cautious approach to interest rate cuts next year.
The average weekly rate on a 30-year fixed-rate mortgage was 6.85 percent for the week ending Dec. 25, the highest it’s been since the week ending July 10, according to data from Freddie Mac. After hitting a low of 6.6 percent for the week ending Dec. 11, the mortgage rate reversed course and has since been on an uptick.
The recent jump came after the Federal Reserve suggested last week that the pace of rate reductions would slow down in 2025. The slower pace of cuts next year could result in interest rates remaining at an elevated level for longer than expected, contributing to higher mortgage rates….