Here's what a $650,000 mortgage loan costs monthly after the December Fed rate cut
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TL;DR
- Fed rate cuts have lowered the federal funds rate to 3.50%-3.75%.
- Average 30-year mortgage rates have dropped to 6.12% from over 7% earlier in the year.
- A $650,000 mortgage at current rates saves approximately $395 monthly compared to January rates.
- Borrowers could save around $174 per month on a 30-year mortgage compared to August rates.
- Waiting for potentially lower rates in 2026 might be risky due to potential home price increases.
- A float-down mortgage rate option offers flexibility to benefit from falling rates while protecting against rising ones.