CBN Plans Lending Rate Cuts as Inflation Eases in Nigeria

Mortgage rates in the U.S. have shown a modest decline recently, with the 30-year fixed mortgage rate falling to around 6.48% to 6.56%, marking multi-month lows driven by expectations of potential Federal Reserve interest rate cuts and a shrinking Fed balance sheet. The Federal Reserve's reduction of its balance sheet by $39 billion in August 2025 and its ongoing management of mortgage-backed securities holdings have contributed to downward pressure on borrowing costs. Despite this, mortgage rates remain above 6%, and industry experts anticipate they will hover above this level through 2025. The Trump administration is considering declaring a national emergency in the housing market to address the high borrowing costs, with discussions around the Federal Reserve possibly reinvesting proceeds from maturing mortgage bonds to lower mortgage rates by 20 to 40 basis points. Meanwhile, in Nigeria, the Central Bank Governor Olayemi Cardoso indicated that lending rates may decline as inflation eases, which could encourage stronger corporate lending and investment. Although U.S. job growth remains sluggish with minimal gains, the slight improvement in mortgage rates offers some relief for homebuyers and those looking to refinance.