Housing starts increased in December

Housing starts have been on a downward trajectory since peaking in 2022. However, single-unit starts increased 7.6% from July. Paired with continued elevated mortgage rates, banks may experience reduced demand for mortgages and construction loans.

CFPB regulations require updates to be announced in the Federal Register. No official notice has been published yet, and it is unclear whether the agency can mandate use of the new version.

House Financial Services Committee advanced legislation to prevent states from imposing interest rate caps on loans from out-of-state state-chartered banks and credit unions. Committee members also advanced a CFPB reform bill.

The Senate Banking Committee advanced the Farm Bill after it had previously stalled, with the current version of the legislation including several provisions supported by ABA.

House lawmakers removed a provision from a tax package that would have permitted entities involved in the staking and mining of digital assets to defer taxes on rewards for those assets.

The Federal Open Market Committee announced it would raise the target range for the federal funds rate by 25 basis points to 3.75% to 4%. The vote was unanimous.