Certain market conditions could occur and cause mortgage rates to rise, fall or stay steady in the new year. Andrii Yalanskyi/Getty Images

Mortgage rates stayed steady through most of 2025, but two consecutive Federal Reserve rate cuts in September and October signaled a slowing economy and cooling housing market. While federal fund rates don't directly cause lenders to lower their rates, mortgage rates are closely tied to Fed decisions .

Borrowers would benefit from continued cuts, but it can be difficult to predict mortgage rate changes with certainty. If you closely monitor federal fund rates and official mortgage rate forecasts, you could time your home purchase or refinance for optimal conditions.

We talked to industry experts about the mortgage interest rate scen

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