Fed Cuts Rates Again

Jerome Powell announces the 2nd Rate with a close eye on the market.

Sticking to the Plan

The fed has stuck to their expected 25 basis points rate cut. This lowers the fed funds rate by 0.25% just as was expected. The projected cuts have not changed since the last meeting, with more rates expected through this year and into 2025.

Why aren’t mortgage rates falling?

This rate cut was already expected and therefore priced into mortgage rates via the bond market. Furthermore, the election results may have the Fed be more cautious about rate cuts going forward. If the economy heats up without cuts to government spending the inflation fears may begin to rise again. The Fed will continue to monitor the economy and will have its next meeting and potential rate cut in December.