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Will mortgage rates fall in December? Here’s what experts predict

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Many homebuyers are hoping mortgage rates will fall this month, but experts say that may not happen yet.

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Mortgage rates soared in the post-pandemic era, leaving borrowers scrambling to find home loans under 7.00%. This came as a big shock to those who’d become used to the 3.00% to 4.00% rates that lasted from the end of the great recession until COVID-19 hit and sent inflation surging. 

As a result, many would-be homebuyers put off their home purchases in hopes of lower mortgage rates, and refinancing was also off the table for many due to high borrowing costs. When inflation began to cool, though, it appeared they’d get their wish for lower costs as the Federal Reserve dropped the benchmark interest rate during both the September and November Fed meetings.

Unfortunately, while there was a brief dip in current mortgage rates, the trend soon reversed course, and the cost of borrowing actually got more expensive again — frustrating those hoping for low rates to finally come in 2024. So for those waiting to buy a home and putting off their purchase in hopes they’ll get a lower rate, the big question now is: What’s going to happen with home-buying costs in December? 

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Will mortgage rates fall in December? Here’s what experts predict

If you’re wondering whether mortgage rates will fall this month, here’s what experts have to say on this issue. 

Mortgage rates probably won’t fall much, if at all, in December

There’s some unfortunate news for those hoping mortgage rates will decline in December. There’s little reason to believe this is a likely outcome.

“While we may see mortgage rates drop modestly in December, anyone expecting a significant change for the better may be disappointed,” says Darren Tooley, senior loan officer at Cornerstone Financial Services.  

Change likely isn’t on the horizon for a few reasons, according to Tooley. 

“The next two-day Fed meeting isn’t until mid-December, and while most experts still predict another rate cut of 25 basis points, there are signals they may pause until they meet again in January,” Tooley says. “Plus, even if the Fed does make another cut, mortgage rates are still near 7% even after the Fed cut rates by 50 basis points in September and by another 25 basis points in November.”

While frustrating for buyers, these trends show Fed rate drops don’t necessarily mean mortgage rates decline. In fact, Sarah Alvarez, vice president of mortgage banking at William Raveis Mortgage, explained that the Federal Reserve’s decision to cut rates doesn’t directly impact mortgages at all, as the Fed only sets the benchmark rate at which banks borrow from each other. A decline of 0.75% in the benchmark rate doesn’t mean mortgages get 0.75% cheaper. 

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Mortgage rates may rise

Stable rates may seem like a bad outcome for those who’ve been waiting for a decline in borrowing costs, but there’s actually a worse potential outcome on the table. 

“It seems unlikely that mortgage rates will fall in December,” Alvarez says. “A better question is whether they will remain stable or continue on their recent march up. Unfortunately, concerns over the next administration’s potentially inflationary policies have shot 10-year treasury yields up, which is typically the closest correlation for mortgage rates banks are offering.” 

Aaron Craig, VP of mortgage and indirect sales for Georgia’s Own Credit Union, points out another troubling fact. 

“After the last couple Fed Funds rate cuts in the last couple months, mortgage interest rates actually went up,” Craig says. 

This could easily happen again, especially as treasury yields trend higher.

Future rate cuts could be coming 

So, is there any hope for those looking to buy a home? While the news may be bleak for December, there is reason to believe there are promising days ahead. 

“Unfortunately, I don’t believe we will see inflation numbers coming down in December, which we will need before we see any major improvement in mortgage rates. However, If we can get better than expected inflationary data and if there are signs of slowing in the jobs reports, along with a December rate cut by the Fed, we may see rates hit the mid-6% range, which would be a significant win for homebuyers,” Tooley says. 

Waiting for this to happen may not be the best idea for would-be buyers, though, especially as many experts think a big drop in mortgage costs could result in borrowers flooding the housing market and sending home prices higher.  

The bottom line

Ultimately, for those who are in a good financial position and who can afford to borrow at today’s rates, moving forward sooner rather than later is likely the best choice. Future refinancing is an option, but returning to today’s rates or home prices in the future may not be, so don’t let hopes of a future rate drop hold you back from your dream home.



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Inside the record-breaking sale numbers expected on Cyber Monday

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Inside the record-breaking sale numbers expected on Cyber Monday – CBS News


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Adobe Analytics is predicting that consumers will spend $13.2 billion this Cyber Monday. CBS News correspondent Nancy Chen reports on what’s driving those sales.

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Bear rampaging through Japanese supermarket for 2 days is lured out with honey, then killed

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A bear that rampaged through a Japanese supermarket for two days was lured out with food coated in honey, local officials said. The animal was trapped and later killed on Monday, police said.

Japan has a growing problem with bears, with a record six human fatalities from attacks and more than 9,000 of the animals killed in the previous fiscal year.

In the latest incident, police received an emergency call early Saturday that a bear had wounded a 47-year-old man in a supermarket in Akita, on Japan’s main island of Honshu. Japan Today reported the man, a store employee, was expected to recover.

A gash on the man’s head “will take at least a week to heal once his stitches get removed, according to a doctor,” a police spokesman told AFP.

The supermarket was evacuated with the animal left inside, where it laid waste to the meat department, according to the Asahi Shimbun daily.

Finally early Monday, the bear walked into a trap containing “rice bran, bananas, apples, and bread, all coated with honey,” an Akita official told AFP.

“We prepared two traps, and one of them captured the bear on the backyard side of the supermarket,” he said.

The animal was killed later Monday, Japan Today reported, citing police.

Human-bear interactions on the rise in Japan

Human fatalities from bears in the fiscal year to March 31 included an elderly woman attacked in her garden and a fisherman whose severed head was found by a lake.  A bear attack was also suspected after a college student was found dead on a mountain in northern Japan.

The period had the highest number of deaths since the government started collecting data from 2006 to 2007.

More than 200 other people were involved in incidents with bears.

In the current fiscal year so far, three people have been killed.

Experts told CBS News that as Japan’s population shrinks, humans are leaving rural areas, and bears are moving in.

“Then that area recovered to the forest, so bears have a chance to expand their range,” biologist Koji Yamazaki, from Tokyo University of Agriculture, told CBS News. 

Other factors include climate change affecting the omnivores’ food supply and their hibernation times. This summer tied for Japan’s warmest on record.

In the previous fiscal year, a record 9,097 bears were killed, more than twice that of the previous period, according to the environment ministry.

Local media have reported that authorities are having problems finding enough hunters to shoot the animals, citing Japan’s declining and ageing population.

The country has two types of bears: moon bears and the larger brown bear, which can weigh 1,100 pounds, outrun a human and, in Japan, only lives in the main northern island of Hokkaido.

Last August , hunters killed an elusive brown bear nicknamed “Ninja” in Hokkaido after it attacked at least 66 cows, the Associated Press reported. And, in October 2023, local Japanese officials and media outlets reported that three bears were euthanized after sneaking into a tatami mat factory in the northern part of the country.


Japanese town uses “Monster Wolf” robots to deter bears

01:14



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Dog rescued from Hurricane Milton floodwaters finds forever home: “We are going to give him the best life”

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A 5-year-old bull terrier that was abandoned and reportedly tied to a post in chest-deep water as Hurricane Milton barreled toward Florida in October has found a new home.

Over the last few weeks, hundreds have applied to be Trooper’s forever family after he was rescued from Milton, which made landfall as a Category 3 storm, by Florida Highway Patrol Trooper Orlando Morales.

“I was kinda enraged at some point, how could anybody just possibly even think of doing an act like this, it was just awful,” Morales previously told CBS News when he was reunited with his four-legged friend.

Amy Raddar with the Leon County Humane Society in Tallahassee, Florida, said they were looking for a very specific adopter for Trooper.

“The outpouring has been so great,” she said.

Bull terriers are a unique breed, known for being sweet dogs, but are also high energy, strong and stubborn.

“I don’t always say people have to have breed experience, but in that particular dog, I think it’s important,” Raddar added.

Carla and Frank Spina, who live 400 miles away from Tallahassee, in Parkland, Florida, have 33 years of experience with bull terriers. 

A friend forwarded a story about Trooper to the couple.

“I said to Frank, ‘Did you hear this story?’ And see I’m going to start crying, and he said, ‘Yeah, I didn’t tell you because I knew you would get upset,'” Carla Spina said.

The Spinas are bull terrier owners and love the breed. They got their first, named Krunchie, in 1992, followed by Diesel. A few years ago, they adopted Dallas.

“We’ve always had an infinity for bull terriers. That’s the breed that we love, they’re special,” said Frank Spina.

They said when they saw Trooper, they knew his needs and wanted to help. They applied to adopt the beloved dog, but there was one major hurdle. Trooper is weary of men because of his past trauma and the humane society wasn’t sure it would work out because of Frank.

The Spinas drove more than seven hours to Tallahassee to see if Trooper would fit in their family.

“Amy said, ‘Frank, why don’t you sit on that bench and see what happens?’ He came over and he got under my legs and I started scratching and his foot started moving,” Frank Spina said.

It was a perfect match, giving Trooper who was once tossed aside, a loving forever family.

“We will take good care of him,” Carla Spina told Raddar when she dropped off Trooper. “We just want everyone to know we are going to give him the best life.”

For the Spinas, it feels like their family’s missing piece was found.

“We are like living in a dream,” said Frank Spina. “We just can’t believe that a month ago we saw a news report and now a month later he’s in my bedroom.”



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