Isn't today the day that Fed Chair Powell is supposed to announce the short term rate cut? Mortgage Rates have already come down, any chance they will come down further?

• Mortgage rates often move ahead of Federal Reserve decisions, as you’ve noticed, because markets anticipate changes based on economic data and guidance from Fed officials.

• When the Fed cuts short-term rates, it does not always lead to immediate or proportional drops in mortgage rates. Sometimes, as with your September 2024 example, mortgage rates can actually rise if the market interprets the move as inflationary or if long-term bond yields increase due to other factors.

• The knowledge base confirms that mortgage costs, insurance, and property tax data are tracked for 2024–2025, but it does not analyze the direct cause-and-effect of specific Fed actions on mortgage rates.

In summary:

• If Powell announces a rate cut today, mortgage rates could move in either direction depending on how the market interprets the Fed’s outlook for inflation, growth, and future rate changes.

• It’s possible that mortgage rates could come down further, but it’s also possible (as happened in September 2024) that they could rise if investors react differently than expected.

For the most up-to-date and detailed information, following live financial news or official Federal Reserve releases will provide confirmation of today’s announcement and immediate market reaction.

How to Monitor Mortgage Rates

• Use reputable financial news sources such as:

  • The Wall Street Journal (Real Estate & Markets sections)

  • CNBC (Markets tab, Mortgage Rate Tracker)

  • Bloomberg (Economics and Rates pages)

  • Freddie Mac’s Primary Mortgage Market Survey (PMMS) for weekly average rates

• Major real estate websites like Realtor.com, Zillow, and Redfin display current average mortgage rates and offer historical charts.

• Many mortgage lenders (e.g., Rocket Mortgage, Wells Fargo, Bank of America) publish daily rate sheets on their websites.

• The Federal Reserve’s own website (federalreserve.gov) posts news releases and meeting minutes for official rate decisions.

How to Explain Rate Movements to Clients

• Mortgage rates are influenced by many factors, not just the Federal Reserve’s actions. These include inflation expectations, economic growth data, investor demand for bonds, and global events.

• The Fed controls short-term rates, but mortgage rates are tied more closely to the 10-year U.S. Treasury yield, which can move independently.

• Sometimes, markets “price in” expected Fed moves before they happen. This means rates may fall or rise in advance of a rate announcement, and then react in the opposite direction if the Fed’s messaging surprises investors.

• Let clients know that while lower Fed rates can support lower mortgage rates, other forces (like inflation or credit market volatility) can push them higher even after a cut.

• Remind buyers and sellers that timing the absolute lowest rate is very difficult—focus on whether current rates work for their goals and financial situation.