The Fed trimmed a key interest rate by a quarter percentage point, its third straight rate cut. But it forecast fewer 2025 cuts amid inflation uptick.

Mexico's central bank lowered its benchmark interest rate by 25 basis points to 10.00% on Thursday and signaled larger rate cuts could be considered in future meetings given progress on inflation in Latin America's second-largest economy.

The Fed doesn't directly set mortgage rates, but it influences them by making changes to the federal funds rate, the interest rate that banks charge one another for short-term loans. The Fed's decisions alter the price of credit, which has a domino effect on mortgage rates and the broader housing market over the long term.