The payments on a $500K mortgage could be more affordable now that the Fed has slashed rates again. FRANCESCO CARTA/Getty Images

The Federal Reserve closed out the year with a highly anticipated December rate cut — its third official cut of the year — pushing the federal funds rate to its lowest level since 2022. While that benchmark rate, which now sits in the range of 3.50% to 3.75%, doesn't directly dictate mortgage pricing , it sets the tone for borrowing costs across the economy. Case in point? Just before the October Fed rate announcement, mortgage rates touched three-year lows , albeit briefly, as lenders priced in the anticipated rate cut.

And, mortgage markets have been recalibrating quickly in response to the latest Fed rate cut, too. Average 30-year mortgage lo

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