Fed Rate Cuts May Not Lower Mortgage Rates as Market Dynamics Diverge
The Federal Reserve's anticipated rate cuts are unlikely to mirror in mortgage rates, echoing last fall's paradoxical rise when the Fed eased policy. Mortgage rates, currently at 6.58%—their lowest since October 2024—already price in future Fed actions, with bond yields and economic data driving volatility.
Industry professionals face renewed client interest as rates dip, though affordability constraints persist. The disconnect underscores how mortgage markets operate independently of direct Fed influence, with September's meeting poised to test this relationship anew.