Making select moves before a December Fed rate cut can help buyers capitalize on the cooling rate climate. Andrii Yalanskyi/Getty Images

The likelihood of another Federal Reserve rate cut, the third such this year, is growing again.

Following an uptick in the unemployment rate in a report released last week, the chances of a rate cut at the Fed's final meeting of the year on December 10 surged. As of November 26, 2025, there's around an 85% chance the central bank will reduce rates again next month, according to the CME Group's FedWatch tool. And while that's good news for borrowers across the country, it's even better news for homebuyers who have been stuck on the sidelines in recent years.

Mortgage interest rates hovered around 3-year lows timed to September and October

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