CBS News-MoneyWatch

The economic environment has shifted over the past few months amidst the election, Federal Reserve rate cuts and stronger-than-expected job growth. However, the housing market remains in a bit of a gridlock.

Buying a home can be challenging right now with home prices high, existing homes in short supply, and interest rates still relatively elevated.

Lawrence Yun, chief economist of the National Association of REALTORS®, notes that 2023 and 2024 were difficult years for home sales but the worst may be over with.

One of the key shifts many prospective homebuyers are waiting for is lower mortgage rates — which we've recently seen some signs of. Below, we'll take a closer look at the mortgage rate trends over the past year and what experts predict will happen this December.

While mortgage rates don't look like they'll fall much throughout December, decreases are more likely over the next few years. Yun predicts six to eight more Fed rate cuts in this cycle and thinks mortgage rates will bounce around between 5.5% and 6.5% over the next four years.

Read the full article