In the past year and a half, the Federal Reserve has been increasing short-term rates to address inflation. This has pushed up mortgage loan rates, although mortgage rates are not directly influenced by the Fed's rates, they tend to move in a similar direction.

However, the situation is changing now. The latest Consumer Price Index reveals that the inflation rate dropped from 3.7% year-on-year growth in October to 3.2%.

If the inflation rate continues to decrease, it is likely that the Fed will keep rates stable and consider rate cuts starting next year. This could result in mortgage loan rates remaining stable or slightly decreasing.

According to reports from Mortgage News Daily, following the inflation report on Tuesday, the average mortgage loan rate for a 30-year fixed-rate loan dropped to 7.4%, lower than the previous day's 7.58%. A month earlier, rates briefly exceeded 8%.

Lawrence Yun, Chief Economist of the National Association of Realtors, stated, "As news of inflation easing spreads, mortgage loan rates are plummeting significantly." He expects rates to fall to around 6% by next spring.

However, it's essential to note that despite the decrease in the inflation rate, it still exceeds the Fed's 2% target. While the Fed chose to maintain rate stability in the recent meeting, they did not rule out the possibility of future rate hikes.

The level of interest rates is directly related to concerns about whether the economy will enter a recession, a situation the Fed has been actively trying to avoid. Usually, during economic turmoil, the Fed lowers rates to stimulate the economy.

Lisa Sturtevant, Chief Economist at Bright MLS, stated, "The Fed will continue to monitor economic data and make policy decisions in an economic environment we have never experienced before." She emphasized that although a soft landing is still possible, the path to a soft landing remains uncertain.