Mortgage Rates Plummet to New Lows, Boosting Refinance Demand

Mortgage rates are expected to continue declining in December as inflation cools. The Federal Reserve is closely monitoring inflation, with the core PCE price index currently at 3.5%, higher than the Fed's target of 2%. While some Fed officials are optimistic about taming inflation and slowing the economy, others anticipate at least one more rate increase. If inflation reports exceed expectations or the Fed hints at future rate hikes, mortgage rates could rise. The overall trend, however, is expected to be downward through 2024.