Facts: The average 30-year fixed mortgage rate from Freddie Mac rose to 6.85% from 6.72% last week. At 6.85%, with 20% down, a monthly mortgage payment is $2,097 on a home with a price of $400,000. With 10% down, the typical payment would be $2,359.

Positive: Home buyer activity has increased despite higher rates for the last two weeks. Increases in housing inventory will continue to help buyers and could provide more affordable home-buying opportunities. First-time buyers are taking advantage of more favorable conditions and are at 30% of the market in the last month. 

Negative: The Fed has moderated its tone regarding rate cuts in 2025. More cuts are expected, but how many is the question into the new year. Buyers are resigned to the fact that mortgage rates are, and are expected to be, in the 6% range for the foreseeable future.
 

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