Mortgage interest rates have gradually but noticeably declined in 2025. Olemedia/Getty Images

For many homebuyers and owners looking to refinance, the holidays may have come a bit early this year. The Federal Reserve issuing an interest rate cut on Wednesday – its third in the last four months – served as a welcome early holiday gift for millions. Fed rate cuts, after all, go a long way toward reducing borrowing costs. And that's been especially needed in the mortgage rate climate, as rates here just two years ago surged to their highest level since 2000 .

But mortgage interest rates have gradually declined for much of this year and, after yesterday's Fed rate cut, may fall a bit further, depending on how lenders interpret these latest actions. At the same time, mortgage

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