Mortgage rates rise to 5-month high

rates ticking up as we head into the new year. Elizabeth Schulze joins us now live from Washington with more. Elizabeth, that sounds like some tough news, but there could be good news for homebuyers. We can always try to find some good news, Janae, but yes, this is the tough news. Second week in a row that mortgage rates ticked higher. We're closing out the year at a five-month high. The average rate on a 30-year fixed mortgage is now 6.85%, which is the highest since early July. And we have seen these rates steadily climb over the fall, which can make a big difference in your monthly bills. A $400,000 home with 20% down payment at today's rates puts your monthly payment at about $2,400. In September, with rates at 6%, it was almost $200 cheaper every month. So this has been a rollercoaster ride for homebuyers watching mortgage rates, but the bottom line, we are now back to whereabout we started at the year, Janae. And I really love when you show us the difference of how your mortgage could increase or decrease because it really shows how it impacts your wallet. But should homebuyers expect to see some sort of relief with mortgage rates next year? And that's why we track this so closely, the difference of hundreds of dollars. But rates are expected to stay in this 6% range next year. And a key reason why is that those rates move in anticipation of the Federal Reserve's moves. The Fed's now saying it's going to be a bit more cautious about cutting rates next year, but still glimmers of hope for buyers in 2025. So more inventory is expected to come onto the market as new homes are built. We've also seen some homeowners who have been waiting to move starting to accept that rates are unlikely to go back to that really low 3% level anytime soon. So if those people do move, it would finally free up homes for buyers who have been sitting on the sidelines, guys. All right. Thank you so much, Elizabeth.