The Fed Cut Rates — Why Mortgage Rates Didn’t Instantly Drop

Last week, the Federal Reserve cut its benchmark rate by 0.25%. While that move helped calm financial markets, mortgage rates didn’t immediately follow suit — and that’s actually normal.

Mortgage rates are driven by the bond market, not directly by the Fed. When investors remain cautious about inflation and economic data, rates can stay choppy even after a Fed cut. As of last week, the average 30-year fixed rate was still hovering in the low-6% range, near recent lows but not dramatically lower.

Why this matters:

• Rate cuts improve sentiment, not instant pricing

• Timing and strategy still matter more than headlines

• Buyers focusing only on “waiting for the Fed” may miss opportunities already available

Quick Takeaway…The Fed opened the door — but mortgage rates walk through it on their own schedule.

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