Fed Rate Cuts Don’t Mean Lower Mortgage Rates — Here’s the Move Homebuyers Should Make

Don’t Count on the Fed to Save Your Mortgage Rate — Here’s the Real Move

Everywhere you turn right now, the headline is the same: the Fed is about to cut interest rates. Cue the questions in my DMs: “So does that mean mortgage rates are about to drop too?”

I wish it worked that way. But here’s the truth: the Fed sets short-term rates (think credit cards and car loans), not long-term mortgage rates. Mortgages march to the beat of the 10-year Treasury bond — and that market already guessed this cut was coming. Translation? A lot of the “rate drop” is already baked in.

So, what happens after the Fed makes its move? Honestly, rates might just hang out where they are… or even bounce back up if inflation heats up again or the Fed hints at fewer cuts ahead.

What you can do right now

Instead of sitting around waiting for the Fed to hand you a cheaper mortgage, here are three smart moves:

• Lock your rate now. If you’re planning to buy or refinance soon, don’t gamble. Lock it in and sleep at night.

• Ask about a float-down. Some lenders let you snag a lower rate if the market dips again before closing — kind of like a built-in insurance policy.

• Shop around. Don’t assume your bank has the best deal. Mortgage brokers often have access to programs and rates the big guys don’t.

Bottom line

Waiting for the Fed to swoop in with dramatically lower mortgage rates is like waiting for your kids to fold the laundry without being asked. Possible? Maybe. Likely? Not really.

If you’re serious about buying, focus on what you can control: locking in a good rate, making sure you’re pre-approved, and having a plan. That’s how you win in this market — not by betting on the Fed.