{"id":20185,"date":"2025-09-02T19:36:59","date_gmt":"2025-09-02T19:36:59","guid":{"rendered":"https:\/\/finderica.com\/?p=20185"},"modified":"2025-09-02T19:36:59","modified_gmt":"2025-09-02T19:36:59","slug":"will-a-fed-rate-cut-lead-to-lower-mortgage-rates","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=20185","title":{"rendered":"Will a Fed Rate Cut Lead to Lower Mortgage Rates?"},"content":{"rendered":"
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Well, summer is officially over and it is now September. And we\u2019ve got a Federal Reserve meeting coming up in two weeks!<\/p>\n

It\u2019s potentially a big one because of all the pressure exerted on the Fed lately from the Trump administration to lower rates.<\/p>\n

He has asked Powell to resign and more recently \u201cfired\u201d Fed governor Lisa Cook for occupancy fraud.<\/p>\n

At the same time, there\u2019s a new statistician in charge of the monthly labor report, which could drive a Fed decision.<\/p>\n

So will an expected Fed rate cut on September 17th lower mortgage rates?<\/p>\n

Mortgage Rates Went Up Last Time the Fed Cut<\/h2>\n

\"mortgage<\/p>\n

Fresh in everyone\u2019s minds is the fact that mortgage rates went up the last time the Fed cut.<\/p>\n

Or at least that\u2019s how the story goes without any context. People love to say this.<\/p>\n

Yes, 30-year fixed mortgage rates rose when the Fed made its first cut last September after raising rates 11 times in a row.<\/p>\n

But what did mortgage rates do prior to that cut? Well, I should remind everyone that mortgage rates were at a ~19-month low when that much-anticipated cut was finally announced.<\/p>\n

The 30-year fixed had fallen from a high of just over 8% in October 2023 to just above 6% less than a year later.<\/p>\n

That\u2019s quite the move for mortgage rates in a such a short span of time, only really matched by the extraordinary ascent that preceded it.<\/p>\n

Then if we take the time to consider that Fed policy moves are largely telegraphed ahead of time, it\u2019s not at all surprising that rates bounced a touch.<\/p>\n

What really made them go up though had nothing to do with the Fed or its cut. It had to do with an awkwardly timed jobs report that came in super-hot.<\/p>\n

The jobs report is what reversed the trend for mortgage rates, not the Fed cut.<\/p>\n

This was followed by a Trump presidential victory, which pushed up rates even further.<\/p>\n

So What Will Happen This Time?<\/h2>\n