The Fed Rate Decision is looming, with the market closely watching its implications for long-term interest rates.

BlockBeats News, December 11th, recently the mortgage rate has fallen slightly, but the trend is not stable. The Federal Reserve does not directly control the mortgage rate through the federal funds rate. The mainstream 30-year fixed mortgage rate usually follows the 10-year U.S. Treasury yield, which is influenced by market expectations of the future economic outlook and monetary policy.

This means that the mortgage rate sometimes does not sync with the Fed's interest rate cut or decision to keep short-term rates unchanged. For example, when the Fed cut interest rates in September, the market uncertainty about future rate cuts actually pushed up mortgage rates. The outcome of this meeting may not necessarily replicate a similar situation, but its result may still disrupt the 10-year Treasury yield and indirectly affect the mortgage rate.

Whether investors, potential homebuyers, or homeowners, they are all highly concerned about the mortgage rate. However, the current changes in the mortgage rate may not be as critical to the overall housing market trend as the next few months. Part of the reason is that it is currently the year-end holiday season, where homebuyers are usually more focused on purchasing gifts rather than properties. The housing market's seasonally slow period typically extends throughout the holiday season until gradually warming up at the beginning of the new year. (Wallstreet CN)