Fed December Rate Cut Spurs Gold Rally and Market Optimism

The Fed's pivot buoys risk assets across markets. Wall Street analysts now predict a fourth consecutive year of stock market growth in 2026 according to analysis. This would mark the longest winning streak in nearly two decades. Fed Governor Miran expects "well over 100 basis points" of cuts this year, potentially fueling the rally.

Housing markets may see particular benefits from lower borrowing costs. The Congressional Budget Office forecasts Treasury yields declining to 3.9% by late 2026 and 3.8% by 2030 as projected. Analysts project this could pull average 30-year fixed mortgage rates into the upper-5% range. Real estate stocks like Compass may benefit as affordability improves according to market commentary. Lower rates could revitalize the housing sector.