With the Fed’s reducing rates in September what it means to you

The Fed made its move this September — they’ve officially started cutting interest rates. But the big question we keep hearing is:

👉 “How much will this actually affect mortgage rates?”

Here’s the breakdown ⬇️

🏦 Fed Cuts vs. Mortgage Rates

While Fed cuts are good news, it’s not as simple as “the Fed lowers rates and suddenly mortgages get cheap.”

• The Fed sets short-term rates

• Mortgage rates (like 30-year fixed loans) are influenced more by long-term bonds such as the 10-year Treasury yield

• Inflation, the overall economy, and demand for mortgage-backed securities all play a role

📉 What We’re Seeing Now

• Rates have already dipped into the mid-6% range — partly because the markets expected the Fed to cut

• Refinancing activity is starting to tick up

• If inflation keeps cooling, we could see another 0.25%–0.5% drop in the coming weeks

• Best case: some buyers with strong credit may see offers in the low 6s or even high 5s

⚠️ The Flip Side

If inflation surprises higher, or bond yields push up, mortgage rates may stall and not move much lower in the near term.

✅ Why It Matters

Even small rate drops can make a big difference:

• More buyers may now qualify who were just shy before

• Current homeowners may get a chance to refinance into a better deal

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🎥 Want the Full Explanation?

We recorded a video breaking down how Fed cuts, inflation, and Treasury yields really impact mortgage rates this fall.