Fed Cuts Again, But Housing Relief Remains Out of Reach
In its third consecutive rate cut to close out 2025, the Federal Reserve lowered its benchmark rate to a 3.5%–3.75% target range amid cooling labor data and stubborn inflation — but the move offers only marginal relief for housing. Market watchers expect mortgage rates to hover in the low-6% range through 2026, keeping affordability strained despite broader economic resilience. In this week’s HousingWire update, Sagent CEO Geno Paluso was quoted, emphasizing that servicers must stay ready for all market outcomes as mortgage rates continue to shift. This “From the Source” breakdown captures what the Fed’s latest move means for lenders, servicers, and homeowners heading into the new year.
Mortgage rates are down almost 1% since January, but rates actually rose after September and October Fed cuts, so we at Sagent must keep servicers prepared to help consumers through all possible market outcomes, from capitalizing on lower-rate refis to navigating hardships.
Sagent leadership is comprised of visionaries who get the details about constantly changing mortgage markets, regulations, and homeowner needs.
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