We have you covered with the latest from the Fed’s final meeting of the year
3:00 p.m. ET: That's a wrap
Thanks for tuning in to our live coverage of the Fed announcement and Jerome Powell's comments. But our coverage isn't finished – far from it. Stay tuned for more from the team at MPA on the Fed cut and what it could mean for the housing and mortgage outlook.
2:53 p.m. ET: Don't expect a hike anytime soon
One thing Powell appears to be ruling out, for now: a move to bring rates higher. The Fed chair doesn't view a rate hike as "anybody's base case at this point". That should come as some relief for homebuyers and owners, even if mortgage rates don't move in tandem with the Fed's funds rate.
2:49 p.m. ET: Get ready for a ‘wait and see’ approach from the Fed
Powell suggests the Fed is likely to take a step back again as it assesses how the economy is faring amid headwinds from many different directions. The central bank, he says, is now positioned to “wait and see how the economy evolves from here.”
2:39 p.m. ET: Takeaways from Powell remarks
Some interesting insights in Jerome Powell’s post-decision remarks. Among them: the central bank chair has heavily referenced the lack of available economic data in recent weeks because of the government shutdown, which has made it harder for the Fed to assess where inflation currently lies.
That’s created a “challenging situation” for the central bank, he said, with near-term inflation risks pointing towards the upside. He also flagged continuing concerns about the labor market outlook and described a difficult path forward. “There is no risk-free path for policy,” Powell said.
2:33 p.m. ET: Powell addresses reporters
Powell is now at the podium, delivering remarks after the Fed opted to cut rates for the third time in a row. You can follow his comments here:
2:30 p.m. ET: Don’t expect huge Fed cuts in 2026
President Trump has frequently said the Fed’s funds rate needs to be far lower – but the central bank’s dot plot reveals that decisionmakers aren’t exactly prepared to slash rates next year.
Instead, Fed officials expect just a single cut in 2026 and another in 2027 – unchanged from September, although the prior unity at the central bank is fraying with three dissenters to its final decision.
2:23 p.m. ET: Up next: Powell delivers remarks
With the Fed decision now done and dusted, attention turns to Chair Powell's comments on the announcement. Financial markets will be watching closely to see if the decisionmaker gives any indication on what's in store for next year.
2:22 p.m. ET: Fed cut a good sign for the housing market?
Kurt Strandson, president at Pinnacle Mortgage Corporation, told MPA’s Chris Davis the cut “lends to the fact that we’re going to be looking at a robust market early 2026.”
He said even discussion about a potential reduction marked positive news for homebuyers and owners because it signaled the Fed wasn’t about to enter hiking mode.
2:10 p.m. ET: Nguyen suggests a refi surge could be ahead
Mortgage rates, of course, don’t automatically move lower when the Fed cuts. But as many mortgage professionals have pointed out, it can prove an important psychological boost for borrowers – and Thuan Nguyen, chief executive officer at Loan Factor, told MPA he’s expecting some homeowners to move off the sideline.
“Many [clients] are waiting to refinance,” he said. “When the Fed cuts rates, we expect a large number of these clients to move forward with refinancing.”
2:05 p.m. ET: Fed vote not as close as expected
Here's Matt Sexton on the Fed decision, which included a surprising twist: while analysts had expected the cut to be a close call, it proved a reasonably straightforward move. Only three members of the FOMC voted against a 25-basis-point cut: Miran, who's long called for oversized reductions, favored a 50-point drop, while Austan Goolsbee and Jeffrey Schmid opposed any cut.
2:02 p.m. ET: Mortgage CEO welcomes Fed cut
Brian Cooke, president and chief executive officer of World Home Loans, says the Fed decision “gives a great opportunity to re-engage with clients to let them know we’re still in a downward rate environment which instills more confidence in homebuying or refinancing an existing loan for better terms.”
The cut, which was already factored into the bond and mortgage markets, came as little surprise. “We don’t expect much change in mortgage rates just yet,” Cooke said. “Further weakening of the economy and tame inflation is necessary to see rates continue on a downward path.”
2:00 p.m. ET: BREAKING – Fed cuts rates
The Fed says it’s lowered its funds rate, closing out the year by cutting to a range of 3.50% to 3.75%. That marks the third consecutive 25-basis-point drop in a row, a decision financial markets had widely expected.
Stay tuned for all the latest industry reaction to a big move by the central bank.
1:55 p.m. ET: Fed preview: First American sees 'hawkish' cut
MPA's Matt Sexton caught up with First American senior economist Sam Williamson before the Fed decision to hear his thoughts on the central bank's next move.
His prediction: a possible "hawkish" cut, "potentially with multiple dissents, with officials likely to stress a higher bar for additional rate cuts."
Sam Williamson of First American says the Fed is poised for a third straight 25 bps cut, driven by labor market softness, but warns of a “hawkish cut” signaling caution for 2026.https://t.co/U7yVBUnQVk
— Mortgage Professional America Magazine (@MPAMagazineUS) December 9, 2025
1:48 p.m. ET: Where to watch Powell's post-decision comments
The YouTube feed where Powell's remarks will be streamed is now live:
1:30 p.m. ET: What to look out for in Powell’s remarks
Powell will deliver remarks to reporters at 2:30 p.m. ET, thirty minutes after the Fed reveals its decision.
Don’t expect too much insight from the Fed chair on the central bank’s likely approach to 2026 – although with many analysts anticipating a “hawkish” cut today, Powell could well pour cold water on chances of deeper reductions in the early months of next year.
The announcement could also be the last before President Trump reveals his choice to replace Powell when his term as Fed chair ends in May. Reports in recent weeks have indicated that the president and his team have whittled the list of candidates down to one – with Kevin Hassett, current director of the National Economic Council, reportedly the favorite.
1:20 p.m. ET: Consensus suggests another Fed cut is on the way
The Fed has maintained a hawkish stance throughout much of this year, opting to leave rates unchanged despite constant calls by President Trump and allies to bring borrowing costs lower. However, it trimmed rates in its last two decisions (in September and October) and anything other than another cut today would come as a surprise to most observers.
In fact, many view a reduction as a foregone conclusion – and see the Fed’s so-called “dot plot,” which maps out central bankers’ expectations for rate policy looking ahead, as the most intriguing storyline of today’s announcement.
That plot could show an unusually divided Fed. Voting members including Stephen Miran, a Trump appointee to the FOMC (Federal Open Market Committee) this year, believe the central bank rate should be much lower and have already voted for bigger cuts.
Others – such as Jeffrey Schmid, the Fed’s Kansas City president who voted against a cut last time out – have taken a more cautious approach.
1:15 p.m. ET: Treasury yields tick slightly lower ahead of Fed decision
Ten-year US Treasury yields, a key driver of 30-year fixed mortgage rates, had been on the rise in the week leading up to today’s Fed decision. But they’ve slid lower today, inching down from a high of around 4.20% to about 4.16% at time of writing.
Market watchers will be keeping a close eye on that yield in the hours following the Fed announcement for clues on how financial markets are reacting to chair Jerome Powell’s remarks – and what could be in store for mortgage rates.
12:54 p.m. ET: The usual disclaimer about Fed decisions and mortgage rates
For mortgage brokers and loan officers, it’s a familiar routine in the buildup to Federal Reserve announcements: fielding calls from homeowners and homebuyers about what the central bank’s upcoming decision means for their mortgage or purchase application.
The answer: Fed decisions don’t directly set mortgage rates. The Fed controls very short-term rates, while 30-year mortgage rates are set in long-term bond and mortgage-backed securities markets.
Mortgage rates mostly reflect what investors expect for inflation, growth, and Fed policy over many years – not just today’s Fed move.
But that’s not to say the Fed’s decision is completely irrelevant to the mortgage market – far from it. The Fed is the main signal and anchor for the whole interest-rate environment, and its policy rate and statements heavily shape markets’ views on future inflation and growth.
Those expectations drive yields on 10-Year Treasuries, which are the key reference for 30-year fixed mortgage rates.
12:41 p.m. ET
The Federal Reserve is meeting this afternoon for the final interest rate decision of what’s been a turbulent and sometimes chaotic year at the central bank.
Fed chair Jerome Powell and other decisionmakers have found themselves at the center of a firestorm in 2025, facing increased scrutiny from the Trump administration over interest rate policy and continued pressure to move rates significantly lower.
Until September, the Fed opted to keep rates unchanged as it weighed up the impact of the president’s tariff war on the economy and inflation outlook. But it’s delivered two 25-basis-point cuts in its last two decisions – and financial markets overwhelmingly believe another quarter-point reduction is on the way in its decision today, set to be revealed at 2:00 p.m. ET.
Follow along here for all the buildup and reaction from a potentially huge day for the Fed.
