Weekly Recap — The Fed Cut and What It Really Means for Rates

This week gave us one of the most anticipated Fed meetings of the year. The central bank delivered a quarter-point cut — the first since December — lowering the federal funds rate to 4.00–4.25%.

On paper, that sounds like good news for mortgage borrowers. But here’s the reality: mortgage rates didn’t move much. Why?

1. Treasuries Run the Show.The Fed controls the short-term rate. Mortgage rates, however, are tied more closely to the 10-Year Treasury yield. After the Fed cut, yields rose, limiting the impact.

2. Inflation Remains Sticky.Without softer inflation data, the bond market isn’t convinced we’ll see sustained relief. That’s why mortgage-backed securities tracked sideways even after the Fed announcement.

3. Windows Are Still There.Small dips came earlier this week, shaving a quarter-percent off pricing for prepared buyers. Those opportunities were brief, but they mattered — saving clients thousands over the life of their loans.

The Fed may have set the stage, but the market is waiting on inflation and jobs data to confirm the next move.

For now, rates are steady in the mid-6s, and preparation remains the winning strategy.