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Mortgage Rates Surge Despite Federal Reserve Rate Cuts

12/18/2025

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Summary

Story summary

The Federal Reserve cut its benchmark rate last week.
Mortgage rates rose to 6.38% on 30-year fixed-rate loans.
Mortgage application volume declined 3.8% according to the Mortgage Bankers Association.
Mike Fratantoni, Chief Economist of the Mortgage Bankers Association, said the rate rise signals the nearing end of the rate-cutting cycle.
Refinance applications fell 4% as borrowers who faced rates above 7% two years ago may benefit from refinancing now.

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Story summary

The Federal Reserve cut its benchmark rate last week.
Mortgage rates rose to 6.38% on 30-year fixed-rate loans.
Mortgage application volume declined 3.8% according to the Mortgage Bankers Association.
Mike Fratantoni, Chief Economist of the Mortgage Bankers Association, said the rate rise signals the nearing end of the rate-cutting cycle.
Refinance applications fell 4% as borrowers who faced rates above 7% two years ago may benefit from refinancing now.