Good morning, homeowners! The mortgage market is sending mixed signals as we approach the new year. The 30-year fixed mortgage rate is currently averaging around 6.21% according to daily surveys, with the Freddie Mac average reported at 6.18%, a slight decrease from previous weeks. The 10-Year Treasury Yield, a key benchmark, also dipped slightly to 4.136% today.

Key Drivers: Recent news suggests this minor downtick is largely driven by anticipation that inflation may be easing, potentially influencing the Federal Reserve's upcoming policy decisions. However, some experts predict rates could soon break into the 5% range due to persistent inflation still putting upward pressure on borrowing costs. Federal Funds Rate decreased from 4.33% to 3.88% over the last 7 months.

Outlook: While the recent dip offers marginal relief to homebuyers and those looking to refinance, significant shifts in the mortgage landscape depend on upcoming inflation data and the Fed's stance. Keep a close eye on economic indicators and any announcements from the Federal Reserve, as these will be the primary drivers shaping mortgage rate trends in the coming weeks. For now, expect a period of cautious stabilization.