What's Happening with Interest Rates Right Now?

Interest-Rate Snapshot

(Late Nov 2025)

  • The Federal Reserve recently cut its target federal funds rate to 3.75 %–4.00 %. Trading Economics+1

  • On mortgages: the average U.S. 30-year fixed mortgage rate is about 6.23 %, down modestly from a year ago (~6.81 %). AP News+2Yahoo Finance+2

  • 15-year fixed-rate mortgages currently average around 5.5 %. AP News+2Bankrate+2

What It Means for Homebuyers & Investors

  • The drop in the Fed’s benchmark rate helps short-term borrowing costs, but mortgage rates move more with long-term bonds and investor demand — so rate cuts don’t automatically translate to major mortgage-rate decreases. CBS News+2Investopedia+2

  • At ~6.2–6.3 %, mortgage rates are lower than recent peaks but still high vs. the years before 2022. That keeps monthly payments substantial — especially in high-price markets like LA.

  • Because rates are “only moderately” lower, buyer demand remains cautious. Homes priced high still face affordability strain — price declines, good negotiation, or big down payments make a bigger difference than a modest rate dip.

What to Watch

  • The next meeting of the Fed may bring another rate cut (many analysts expect a 25-basis-point cut). Yahoo Finance+1

  • Long-term interest rates (like the 10-year Treasury yield) will influence mortgage rates more than Fed short-term rates. A drop in Treasury yields could push mortgage rates lower. Yahoo Finance+1

  • Local market factors — home prices, inventory, competition — will matter most for buyers and sellers in LA.

Information current as of Nov. 2025. Interest rates and economic conditions can change quickly.

Disclaimer: This information is provided for educational purposes only and should not be considered personalized financial advice. Interest rates, economic conditions, and market forecasts can change rapidly and may not reflect actual future outcomes. Before making any financial decisions, please consult with a qualified financial advisor who can assess your circumstances and provide guidance tailored to your specific situation.