The Federal Reserve’s rate cuts don’t always lower mortgage rates because they affect short-term, not long-term, interest rates.
Mortgage rates are tied to long-term Treasury yields, which respond more to inflation, employment, and economic trends.
Ahead of the Fed’s September 2025 cut, mortgage rates had already fallen from 6.89% to 6.26% but then rebounded to 6.30%.
Experts say weaker labor or inflation data, not Fed actions alone, are needed to push mortgage rates lower.
Homebuyers should focus on their budget and long-term plans instead of short-term rate movements.