Mortgage rates hold steady with 30-year fixed loans at 7.38%

Mortgage rates for 30-year fixed loans held steady at 7.38% last week, according to HousingWire. Jumbo loan rates decreased slightly to 7.62%, and FHA loan rates fell to 7.16%.

The Federal Reserve maintained the federal funds rate between 3.75% and 4% in its recent decision, but 77% of traders expect a 25-basis-point increase in December, as reported by HousingWire. This anticipation has kept mortgage rates relatively stable.

HousingWire noted that the downward momentum in mortgage rates has cooled, despite more potential homebuyers seeking financing due to the current rates. The 10-year Treasury yield has been dropping, which has helped keep mortgage rates from rising sharply.

Experts like Hector Amendola of SimplyPMG told HousingWire that the market has already priced in the expected December hike, making significant rate changes unlikely for the rest of the year. The Federal Reserve is also planning to reduce the number of policy votes in upcoming years, which may impact future rate decisions.