The Federal Reserve's interest rate decision is approaching, and the market is closely watching its implications for long-term interest rates.

BlockBeats News, December 11 — Recently, mortgage rates have retreated, but the trend remains unstable. The Federal Reserve does not directly control mortgage rates through the federal funds rate. The mainstream 30-year mortgage rate typically follows the 10-year U.S. Treasury yield, which is influenced by market expectations regarding future economic trends and monetary policy. This means that sometimes mortgage rates can diverge from the Federal Reserve’s decisions to cut rates or keep short-term rates unchanged. For example, when the Fed cut rates in September, uncertainty about further rate cuts led to an increase in mortgage rates. This meeting may not replicate similar scenarios, but its outcome could still disturb the 10-year Treasury yield and indirectly affect mortgage rates. Investors, potential homebuyers, and homeowners are all highly focused on mortgage rates. However, the current fluctuations in mortgage rates may not be as critical to the overall housing market trend as they will be in the coming months. Part of the reason is that it is currently the holiday season, and buyers tend to focus more on shopping for gifts rather than purchasing property. The housing market’s seasonal slowdown generally extends throughout the holiday season until the New Year, when activity gradually picks up again. (Jin10)