Last year, the path to lower mortgage rates seemed relatively straightforward: Official inflation would go down, the Federal Reserve would cut interest rates and the cost of borrowing would gradually ease in 2025.

Rates on 30-year mortgage refinance loans edged up another 3 basis points Monday, pushing the average up to 7.15%. That's just 4 basis points under the 7.19% reading notched on Dec. 24, which was the most expensive level for 30-year refi rates since late July.

The biggest wildcard for mortgage rates next year is whether President-elect Trump’s major policy initiatives will end up driving infl

Mortgage rates have steadily increased over the past three months, a frustrating development for home buyers trying to enter the housing market. When the Fed began cutting interest rates in September 2024,