25-basis-point rate cut at its December meeting, marking its third reduction of 2025. The Federal Open Market Committee lowered the federal funds target range to 3.50%–3.75%, signaling ongoing pressure to support credit conditions as inflation trends toward the Fed’s comfort zone. This decision comes at a moment when U.S. mortgage rates remain highly sensitive to Treasury yields, not just the Fed’s policy path. Yet the latest cut gives borrowers a clearer sense of direction as mortgage costs continue to dri ...