Catenaa, Wednesday, December 24, 2025- Mortgage rates remained unchanged lastweek, with average lenders reporting no movement from Monday, as investors await a key inflation report that could influence borrowing costs, reports said.
The stability follows a relatively quiet day in the bond market, which drives long-term mortgage rates, after a labor report failed to trigger major shifts.
Bond investors are closely watching the Consumer Price Index, set for release Wednesday, for signals on inflation trends and potential Federal Reserve action.
The CPI report, the first since the federal government shutdown, is expected to influence rates if figures deviate from market expectations. Historically, inflation data prompts stronger reactions in mortgage yields than employment reports.
Tuesday’s calm came after Monday’s jobs data showed steady labor market activity.
While the employment numbers did not move rates significantly, trading volume in government bonds reached the highest level since late November, suggesting investors are positioning ahead of the CPI release.
Analysts note that even modest deviations in inflation readings can cause upward or downward pressure on mortgage rates, as lenders adjust pricing in response to anticipated Fed policy changes.
Market participants are also monitoring broader economic signals, including consumer spending and price trends, that inform rate forecasts for early 2026.
Lenders are expected to react quickly to Wednesday’s data. Borrowers and investors remain attentive, as higher-than-expected inflation could push rates higher, while a softer reading could reinforce the current plateau in borrowing costs.
