I hope your week is off to a wonderful start. As we navigate these final weeks of 2025, I’ve been reflecting on how much “noise” there is in the news lately. Between Fed meetings, jobs reports, and shifting market trends, it’s easy to feel a bit overwhelmed. My goal today is to cut through that noise and share what actually matters for your wallet and your home.
Breaking a Stubborn Trend
For most of this year, we’ve dealt with a frustrating disconnect: the Fed would cut rates, but mortgage rates would actually go up. It felt like we were taking one step forward and two steps back.
However, we finally saw that trend break this past week! Following the most recent Fed meeting, long-term mortgage rates actually declined. According to Freddie Mac, the 30-year fixed-rate mortgage averaged .38 percent lower than the average for this period a year ago. It’s a breath of fresh air for buyers who have been waiting for a bit of balance.
What the Fed is Telling Us (and What They Aren’t)
The Fed delivered a quarter-point rate cut last week, but I’d call it a “Hawkish Cut.” Think of it like a parent giving a teenager the car keys, but then handing over a long list of rules. They are easing up slightly, but they aren’t ready to declare “mission accomplished” on inflation.
Interestingly, the Fed’s projections for 2026 suggest only one more rate cut for that entire year. They believe the economy is strong enough to handle higher rates for longer. While that sounds conservative, there’s a silver lining: the Fed is continuing to buy short-term Treasury bills. This “behind the scenes” move helps keep the banking system stable, which usually means less volatility for mortgage rates.
The Power of Education
I came across a sobering report from FirstHome IQ this morning. It found that 93 percent of Millennials and Gen Z didn’t receive financial literacy education in school. Even more surprising? Only 7 percent understand what the minimum down payment is needed for a home.
This hits home for me (no pun intended!) because I see it every day. Many people delay homeownership not because they don’t want to buy, but because they are (understandably) confused by the process. If you have a child or a friend who thinks they need 20 percent down to start their journey, please send them my way. I’d love to simply explain the options—no strings attached. Education is the best way to turn a “maybe someday” into a “welcome home.”
What’s on the Horizon?
The market is currently in a “consolidation pattern,” but keep an eye on this Thursday’s Consumer Price Index (CPI) report. Inflation is the other half of the Fed’s equation, and a favorable report could help rates settle even further.
Whether you are looking to buy, sell, or just want to understand how your current equity is performing, I am always here to be a resource for you.
