Rate Cuts

Impacted Sector

Residential Mortgages

Primary Regulator

Federal Reserve (United States)

Target Inflation Range

2% to 3%

December 2025 Rate Reduction

0.25% (25 basis points)

Federal Funds Rate (Dec 2025)

3.5% - 3.75%

September 2025 Rate Reduction

0.50% (50 basis points)

2024-04-12

2025-03-21

2025-03-26

2025-09-18

2025-10-01

2025-12-12

| | Mar 26 | Hungary cuts Base Rate to 8.25 % (- 0.75) | Central Bank | | | Mar 25 | Sri Lanka cuts Key Rate (SDFR) to 8.50 % (- 0.50) | Central Bank | | | Mar 22 | Colombia cuts Key Rate to 12.25 % (- 0.50) | Central Bank | | | Mar 21 | Costa Rica cuts Policy Rate to 5.25 % (- 0.50) | Central Bank | | | Mar 21 | Mexico cuts Benchmark Rate to 11.00 % (- 0.25) | Central Bank | | | Mar 21 | Paraguay cuts Policy Interest Rate to 6.00 % (- 0.25) | Central Bank | [...] | | Sep 30 | Jamaica cuts Policy Rate to 6.50 % (- 0.25) | Central Bank | | | Sep 30 | Dominican Republic cuts Key Rate to 6.50 % (- 0.25) | Central Bank | | | Sep 30 | Colombia cuts Key Rate to 10.25 % (- 0.50) | Central Bank | | | Sep 30 | Mozambique cuts Policy Rate to 13.50 % (- 0.75) | Central Bank | | | Sep 27 | Ghana cuts Monetary Policy Rate to 27.00 % (- 2.00) | Central Bank | | | Sep 26 | Mexico cuts Target Rate to 10.50 % (- 0.25) | Central Bank | [...] | | Sep 18 | Norway cuts Key Rate to 4.00 % (- 0.25) | Central Bank | | | Sep 18 | Jordan cuts CBJ main Rate to 6.25 % (- 0.25) | Central Bank | | | Sep 18 | Kuwait cuts Discount Rate to 3.75 % (- 0.25) | Central Bank | | | Sep 18 | Saudi Arabia cuts Repo Rate to 4.75 % (- 0.25) | Central Bank | | | Sep 18 | Bahrain cuts Key Interest Rate to 4.75 % (- 0.25) | Central Bank | | | Sep 18 | USA cuts Funds Rate to 4.00 - 4.25 % (- 0.25) / chart & historical Rates | Central Bank |

In early December, the Federal Reserve wrapped up the year with another quarter-point rate cut, the third of the year. This rate cut was welcome news for borrowers, as it helped drive down interest rates across a range of borrowing products, from mortgage loans to personal loan rates. And, given today's still-high mortgage rate landscape, prospective homebuyers are likely hoping this latest Fed rate cut signals that there's more meaningful relief ahead when the new year rolls around. [...] Many buyers assume that mortgage rates fall in lockstep with Federal Reserve rate cuts, but the relationship between the Fed rate and mortgage rates is more nuanced. While the Fed influences short-term interest rates, mortgage rates track longer-term Treasury yields — and the 10-year Treasury, in particular — because those yields reflect investor expectations for inflation, economic growth and overall risk. [...] Wolf says a drop from 6.5% to 6.0% could allow "2 million more households across the country" to afford a home, but also notes that if lower rates stem from a weakening labor market, "the more immediate response will be consumers sitting on the sidelines until they feel more comfortable making the largest investment of their lives." Wolf advises buyers to avoid trying to "perfectly time the housing market," emphasizing that long-term homeownership tends to build wealth.

The Federal Reserve cut the federal funds rate by 25 bps to a range of 3.5%–3.75% in its December 2025 meeting, following similar reductions in September and October, and in line with expectations. This brings borrowing costs to their lowest level since 2022. The committee remained divided, with three members continuing to vote against the cut, which hasn’t happened since September 2019. Stephen Miran pushed for a deeper 50bps reduction, in contrast to Austan Goolsbee and Jeffrey Schmid, who [...] The Federal Reserve cut the federal funds rate by 25 bps to a range of 3.5%–3.75% in its December 2025 meeting, following similar reductions in September and October, and in line with expectations. This brings borrowing costs to their lowest level since 2022. The committee remained divided, with thr...ee members continuing to vote against the cut, which hasn’t happened since September 2019. Stephen Miran pushed for a deeper 50bps reduction, in contrast to Austan Goolsbee and Jeffrey Schmid, who [...] The Federal Reserve is widely expected to cut the federal funds rate by 25 bps to a range of 3.5%–3.75% in December 2025, following similar reductions in September and October. This would bring borrowing costs to their lowest level since 2022. The decision comes amid clear signs of a rapidly cooling... labour market, even as policymakers continue to operate without several key government data releases that remain delayed or suspended due to the shutdown. Markets will also focus on the updated

The U.S. Federal Reserve cut the target range for the Federal Funds Rate from the historic 23-year high by 0.50% in September. Experts predict there will be more cuts to come.1 If continued cuts occur, borrowing often becomes more affordable for consumers because interest rates on loans come down, as well. But be mindful: The size of the Fed’s cuts aren’t guaranteed; nor is the amount you may save. [...] When the Fed raises or lowers its “benchmark” rate, mortgage rates tend to follow. As of early September, the average rate on a 30-year fixed mortgage dropped to 6.38%, from an average of 7.23% a year ago.3, 4 [...] These duties include setting the target interest rate for the Federal Funds Rate, which banks often use as a basis to set their own rates. The Fed adjusts the Federal Funds Rate in correlation with economic factors such as inflation, which the Fed tries to keep at 2% to 3%. In order to help manage inflations, the Fed may choose to trim this rate, so borrowing money is less expensive, and consumers can afford bigger purchases.