The Fed left interest rates the same after their 1/4 point cut in December 2025.
This was an expected pause, after the 1/4 point cuts in the December 2025 Federal Reserve Meeting, the October 2025 Federal Reserve meeting and the September 2025 Federal Reserve meeting, which followed a continued pause beginning at the January 2025 Federal Reserve meeting, and remaining paused in the March 2025 Federal Reserve meeting , the May 2025 Federal Reserve meeting and June 2025 Federal Reserve meeting.
With inflation not moving much, and the labor market not changing much since the December 2025 cut, plus Fed officials wanting to see how recent rate cuts affect the economy, most rate forecasters saw a very little chance a rate cut would be imminent.
Thank you to USA Today for their live coverage of the Fed meeting.
When it comes to mortgage interest rates, they are determined by many factors. The Fed’s decisions on interest rate hikes or cuts can be one of those factors, but it is generally a small part. Lenders that I work with say that mortgage companies generally anticipate when the Fed will raise or drop rates, so mortgage rates and terms usually already reflect any potential upcoming pause, hike or cut prior to an official Fed meeting announcement. Much of the industry expected rates to remain the same at this meeting.
If you are considering buying a home in Timonium, Towson, and the Greater Baltimore area, please contact me. I could connect you with a local trusted mortgage professional who can help to guide you through your mortgage options as your buy your new Baltimore home with me!
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