The Fed provided a 1/4 point interest rate cut on December 18, 2024.
This is third drop after a 1/4 point drop in the November 2024 Federal Reserve meeting and a 1/2 point drop in the September 2024 Federal Reserve meeting, which happened after continued pauses in March 2024, May 2024 and June 2024 Federal Reserve meetings. Prior to those pauses, we had seen rates rise consistently for awhile.
The Fed indicated it planned to hold rates steady in the future, as inflation remains above their 2% goal. The Fed hopes to have two rate cuts in 2025, which is down from the four rate cuts they had outlined in September’s meeting.
I have noted before how mortgage interest rates are determined by many factors. The Fed’s decisions on interest rate hikes or cuts can be one of the factors, but it is generally a small part. According to multiple lenders that I work with, mortgage companies generally anticipate when the Fed will raise or drop rates, so mortgage rates and terms usually already reflect any potential upcoming pause, hike or cut beforehand.
If you are considering buying a home in Timonium, Towson, or the Greater Baltimore area, please contact me. I would be happy to connect you with a local trusted mortgage professional who can help to guide you through your mortgage options as your buy your new Towson home with me!
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