Mortgage rates in the United States have become a focal point for potential homebuyers and the broader economy, especially following recent decisions by the Federal Reserve. On December 18, 2024, the Federal Reserve implemented a 0.25 percentage point reduction in the federal funds rate, marking its third rate cut of the year.

The U.S. stock market experienced a significant downturn today, following the Federal Reserve's announcement of a 0.25 percentage point interest rate cut—the third reduction this year. Despite this cut, the Fed signaled a more cautious approach for 2025, projecting only two additional quarter-point cuts, a revision from the four anticipated in September.