Bitcoin News Today: Housing Market Stagnation Forces Fed's Hand on Aggressive Rate Cut Path

The U.S. stock market is increasingly shaped by expectations of Federal Reserve rate cuts, as weaker-than-expected employment data has shifted the narrative toward an easing monetary policy outlook. The latest August jobs report showed a mere 22,000 nonfarm payrolls added, far below the projected 75,000, and triggered a surge in market expectations for aggressive rate cuts. The probability of a Fed rate cut at the September 17 meeting has climbed to 100%, with a 50-basis-point cut now factored in with a 12% chance [1]. The downward revisions to prior months’ job growth figures—revealing a net loss of 13,000 jobs in June—have further solidified concerns about a weakening labor market and elevated the odds of additional cuts in November and December [1].

These developments have already triggered a sharp decline in mortgage rates, with the 30-year fixed mortgage rate falling to 6.29%—the lowest level since October 2024. The drop marks the largest single-day decline since August 2024 and reflects a broader shift in bond markets, with the 10-year Treasury yield falling to 4.076% [1]. Analysts suggest that if mortgage rates stabilize in the low 6% range, it could provide a much-needed boost to a stagnant housing market, which has seen weak demand amid elevated home prices and borrowing costs [1].

Despite the anticipated rate cuts, however, the U.S. housing market remains subdued. Sales of existing homes have remained largely flat in 2025, with the number of listings rising and demand lagging. Construction activity has also remained lethargic, with building permits declining for much of the year. The market’s weak performance has even prompted Fed officials to express concerns about its impact on broader economic stability [1].

Looking ahead, the upcoming release of the August Consumer Price Index (CPI) report will provide critical insight into inflation’s trajectory and could influence the Fed’s policy decisions. While the core CPI is expected to rise 0.3% month-over-month, keeping the year-over-year rate at 3.1%, the headline CPI is forecast to have risen 0.3% as well [4]. The data will be closely watched as the central bank seeks a balance between addressing inflationary pressures and supporting an increasingly fragile labor market.

The market’s mixed response to the jobs data and Fed cut expectations was also evident in the performance of Bitcoin (BTC), which failed to rally despite the reduced borrowing costs. BTC remains below $112,000, with technical indicators suggesting a bearish outlook. The cryptocurrency’s inability to break above the double-top neckline has reinforced concerns of a deeper sell-off, mirroring a similar pattern from early 2025 [4]. Meanwhile, Treasury yields, which initially dropped on the news of rate cuts, could see renewed volatility if inflation remains sticky and fiscal spending continues to expand.

Source: [1] Mortgage rates 30-year fixed Fed rate cuts housing market jobs report (https://fortune.com/2025/09/06/mortgage-rates-30-year-fixed-fed-rate-cuts-housing-market-jobs-report/) [2] U.S. Economic Calendar (https://www.marketwatch.com/economy-politics/calendar) [3] FRED Graph - Federal Reserve Bank of St. Louis (https://fred.stlouisfed.org/graph/?g=rocU) [4] Bitcoin (BTC) Doesn’t Cheer Fed Cut Bets. What Next? (https://www.coindesk.com/markets/2025/09/06/bitcoin-doesn-t-cheer-fed-cut-bets-what-next)