💨 Abstract

The Federal Open Market Committee cut interest rates by 25 basis points in December 2025. This decision primarily affects short-term loans and real estate developers, potentially boosting homebuilding and stabilizing housing prices. However, it won't immediately lower long-term mortgage rates, which are influenced by the 10-year Treasury bond yields and economic indicators like inflation and employment data. The upcoming jobs report is expected to have a more significant impact on mortgage rates.

Courtesy: WTOP Staff