Business
Mortgage rates see biggest one-day drop in over a year
The average rate on the 30-year fixed mortgage dropped 16 basis points to 6.29% on Friday, according to Mortgage News Daily, following the release of a weaker-than-expected August employment report.
It marks the lowest rate since Oct. 3 and the biggest one-day drop since August 2024. Rates are finally breaking out of the high 6% range, where they’ve been stuck for months.
“This was a pretty straightforward reaction to a hotly anticipated jobs report,” said Mortgage News Daily Chief Operating Officer Matt Graham. “It’s a good reminder that the market gets to decide what matters in terms of economic data, and the bond market has a clear voting record that suggests the jobs report is always the biggest potential source of volatility for rates.”
Graham said in a post on X that many lenders are “priced better” than Oct. 3 and would be quoting in the high 5% range.
The drop is a major change from May, when the rate on the 30-year fixed peaked at 7.08%. It’s big for buyers out shopping for a home today, especially given high home prices.
Take, for example, someone purchasing a $450,000 home, which is just above August’s national median price, using a 30-year fixed mortgage with a 20% down payment. Not including taxes or insurance, the monthly payment at 7% would be $2,395. At 6.29%, that payment would be $2,226, a difference of $169 per month.
A sign is posted in front of a home for sale on Aug.27, 2025 in San Francisco, California.
Justin Sullivan | Getty Images
That might not sound like a lot to some, but it can mean the difference in not just affording a home, but qualifying for a mortgage.
Homebuilder stocks reacted favorably Friday, with names like Lennar, DR Horton and Pulte all up roughly 3% midday. Homebuilding ETF ITB has been running hot for the last month as rates slowly moved lower. It’s up close to 13% in the past month.
The big question is whether the drop in rates will be enough to get homebuyers back in the market.
Mortgage demand from homebuyers, an early indicator, has yet to respond to gradually improving rates. Applications for a mortgage to purchase a home last week were 6.6% lower from four weeks before, according to the Mortgage Bankers Association.
“Homebuyers grapple with a lack of affordability, sellers contend with more competition, and builders deal with lower buyer demand,” said Danielle Hale, chief economist at Realtor.com, in a statement Friday after the release of the August employment report. “These conditions haven’t spelled catastrophe, but have created a cruel summer for the housing market.”
Some analysts have argued that buyers need to see mortgage rates in the 5% range before it really makes a difference. Home prices remain stubbornly high, and while the gains have definitely cooled, they are not yet coming down on a national level. In addition, uncertainty about the state of the economy and the job market has left many would-be buyers on the sidelines.
Business
8th Pay Commission: Railways Trims Costs To Manage Wage And Pension Burden As Likely Effective Date Nears
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Indian Railways starts cost-cutting ahead of 8th Pay Commission, set for retrospective implementation from January 01, 2026, to manage higher wage and pension expenses.
8th Pay Commission impact: Railways tightens spending before Jan 1, 2026
8th Pay Commission: Even though the 8th Pay Commission is expected to submit its report within 18 months of its formation, the implementation of recommendations will be likely effected retrospectively from January 01, 2026.
With the likely date of implementation nears, Indian Railways has reportedly begun cost-cutting across maintenance, procurement and energy use to avoid a big financial burden in the form of higher wages and pensions to current and ex-employees once the 8th Pay Commission takes effect, according to Times of India report.
After delays, the 8th Pay Central Pay Commission has been finally constituted by the Central government in October this year with the notification of Terms of Reference (ToR) to review the wages and allowances of its staff and pensioners.
The pay panel is constituted every 10 years to review the wages and allowances of its workforce. The 7th Pay Commission’s recommendations were implemented from January 01, 2016, with arrears paid within the 2016-17 financial year.
According to a TOI report, Indian Railways recorded an operating ratio (OR) of 98.90 per cent in 2024–25, leaving a net revenue of Rs 1,341.31 crore.
For 2025–26, the Railways has set a target OR of 98.42 per cent, with net revenue estimated at Rs 3,041.31 crore, highlighting continued pressure on margins despite higher revenues.
As per TOI report quoting officials, the railway will reduce its reliance on borrowing as Indian Railway Finance Corporation (IRFC) annual payments are expected to decline from 2027-28 on the back of recent capital expenditures funding through gross budgetary support (GBS).
8th Pay Commission Implementation Timeline
In the latest update, Minister of State for Finance Pankaj Chaudhary has said the timing and funding of the 8th Pay Commission will be decided later.
“The 8th Central Pay Commission (CPC) has already been constituted. The Terms of Reference (ToR) of the 8th Central Pay Commission have been notified vide Ministry of Finance’ Resolution dated 03.11.2025. The number of Central Government employees is 50.14lakh and the number of pensioners is 69 lakh approximately. The date of implementation of the 8th Central Pay Commission shall be decided by the government. Government will make appropriate provision of funds for implementing the accepted recommendations of 8th CPC,” Chaudhary said in response to a query in the Lok Sabha on December 8, 2025. The question was about whether the government proposes to implement the 8th Pay Commission with effect from January 1, 2026.
He added that the 8th Central Pay Commission will devise the methodology and procedure for formulating its recommendations.
“As specified in the Resolution notified on November 3, 2025, the 8th Central Pay Commission will make its recommendations within 18 months from the date of its constitution,” the MoS Finance added.
Click here to add News18 as your preferred news source on Google. December 15, 2025, 13:44 IST
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New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved a proposal to allow 100 per cent foreign direct investment (FDI) in insurance companies in a major economic reform that does away with the 74 per cent limit that was in place for such investments.
The Cabinet approval will pave the way for attracting more foreign investment in the insurance sector, increase competition which in turn will benefit customers.
The Insurance Laws (Amendment) Bill 2025 is likely to be introduced during the ongoing winter session of Parliament which draws to an end on December 19.
The Lok Sabha bulletin lists the Insurance Laws (Amendment) Bill 2025, aimed at boosting insurance penetration, accelerating sectoral growth and development, and improving the ease of doing business, among the 13 legislative items for discussion in the parliamentary session.
Finance Minister Nirmala Sitharaman had, during the presentation of the Union Budget for 2025-26, announced a proposal to increase the foreign investment limit in the insurance industry from 74 per cent to 100 per cent as part of broader financial sector reforms.
The finance ministry has recommended revising several sections of the Insurance Act, 1938. These proposed changes include increasing the FDI limit to 100 per cent, lowering paid-up capital requirements, and creating a composite licence framework.
As part of a wider legislative overhaul, amendments will also be made to the Life Insurance Corporation Act 1956 and the Insurance Regulatory and Development Authority Act 1999, in addition to the Insurance Act 1938.
Changes to the LIC Act are intended to give its board greater authority over operational matters, such as opening new branches and hiring staff.
The overarching purpose of the amendment is to strengthen policyholder protections, bolster financial security, and encourage more participants to enter the insurance market, thereby supporting economic expansion and job creation.
These reforms are expected to improve industry efficiency, simplify business operations, and push insurance penetration forward to achieve the vision of Insurance for All by 2047, according to an official statement.
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Petrol, Diesel Price On December 15: Check City-Wise Rates Across India Including In Delhi, Mumbai and Chennai.
Petrol, Diesel Prices On May Dec 15
Petrol and Diesel Prices on December 15, 2025: OMCs update petrol and diesel prices daily at 6 AM, aligning them with fluctuations in global crude oil prices and currency exchange rates. This daily revision promotes transparency and ensures consumers have access to the most up-to-date and accurate fuel prices.
Petrol Diesel Price Today In India
Check city-wise petrol and diesel prices on December 15:
| City | Petrol (₹/L) | Diesel (₹/L) |
|---|---|---|
| New Delhi | 94.72 | 87.62 |
| Mumbai | 104.21 | 92.15 |
| Kolkata | 103.94 | 90.76 |
| Chennai | 100.75 | 92.34 |
| Ahmedabad | 94.49 | 90.17 |
| Bengaluru | 102.92 | 89.02 |
| Hyderabad | 107.46 | 95.70 |
| Jaipur | 104.72 | 90.21 |
| Lucknow | 94.69 | 87.80 |
| Pune | 104.04 | 90.57 |
| Chandigarh | 94.30 | 82.45 |
| Indore | 106.48 | 91.88 |
| Patna | 105.58 | 93.80 |
| Surat | 95.00 | 89.00 |
| Nashik | 95.50 | 89.50 |
Key Factors Behind Petrol and Diesel Rates
Petrol and diesel prices in India have remained unchanged since May 2022, following tax reductions by the central and several state governments.
Oil Marketing Companies (OMCs) update fuel prices daily at 6 am, adjusting for fluctuations in global crude oil markets. While these rates are technically market-linked, they are also influenced by regulatory measures such as excise duties, base pricing frameworks, and informal price caps.
Key Factors Influencing Fuel Prices in India
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Crude Oil Prices: Global crude oil prices are a primary driver of fuel prices, as crude is the main input in petrol and diesel production.
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Exchange Rate: Since India relies heavily on crude oil imports, the value of the Indian rupee against the US dollar significantly affects fuel costs. A weaker rupee typically translates to higher prices.
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Taxes: Central and state-level taxes constitute a major portion of retail fuel prices. Tax rates vary across states, leading to regional price differences.
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Refining Costs: The cost of processing crude oil into usable fuel impacts retail prices. These costs can fluctuate depending on crude quality and refinery efficiency.
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Demand-Supply Dynamics: Market demand also influences fuel pricing. Higher demand can push prices up as supply adjusts to consumption trends.
How to Check Petrol and Diesel Prices via SMS
You can easily check the latest petrol and diesel prices in your city through SMS. For Indian Oil customers, text the city code followed by “RSP” to 9224992249. BPCL customers can send “RSP” to 9223112222, and HPCL customers can text “HP Price” to 9222201122 to receive the current fuel prices.
Click here to add News18 as your preferred news source on Google. December 15, 2025, 07:28 IST
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