Key Takeaways The big question facing bond markets in 2026—and thus anyone hoping to buy a home—is whether long-term rates will stay sluggishly high even as the Federal Reserve cuts rates. It's a scenario that could diminish the impact of the Fed's rate cuts, as homebuyers hold off amid elevated mortgage rates and businesses opt against longer-term investments. It is, however, one that several analysts think may occur next year. Those analysts foresee interest rate charts "steepening,†with long-term rates r ...