Big news coming from the Federal Reserve this week. After nine months of steady rates, the Fed is expected to cut interest rates a little—about a quarter-point.
Why? Jobs are slowing down, and the Fed wants to make sure the economy stays healthy.
If you’re thinking about buying a home, here’s the good part: mortgage rates have already started falling.
The average 30-year fixed mortgage is down to 6.35%, the lowest it’s been in almost a year!
That means borrowing money for a new home might be a bit cheaper.
But a quick heads-up: mortgage rates don’t always follow the Fed directly.
They usually move with long-term bonds, and things like inflation, government debt, and what the market expects the Fed to do next can all shake them up.
So don’t assume rates will keep dropping after the Fed meeting—sometimes they even rise if the Fed surprises everyone.
There’s also some political drama adding extra uncertainty.
President Trump has been pushing for lower rates, even trying to influence who gets to vote on Fed decisions.
Fed Chair Jerome Powell says decisions will be based on data, not politics, but the market is watching closely.
Bottom line: a Fed rate cut could mean lower mortgage rates and some savings for homebuyers, but it’s not a guarantee.
If you’re thinking of buying, now’s a good time to check rates and see what fits your budget.
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