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Fed Rate Cut Expected: Mortgage Rates May Drop

12/8/2025

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Story summary
  • A Federal Reserve rate cut on December 10 is expected, with a 90% chance of lowering the target range to 3.50%–3.75%, which could reduce mortgage rates.
  • Lenders may have already adjusted their rates in anticipation.
  • Borrowers should shop around and act quickly to secure favorable mortgage terms.
  • Market reactions to Federal Reserve Chair Jerome Powell's comments after the meeting could further influence rates.