Video
October 31, 2025
Airs live on YouTube
October 31, 2025
The Fed Cut Rates... And Mortgage Rates Went Up?!
Market Update
Coming Soon
Follow us on YouTube to watch live!
The Fed cut interest rates by 0.25%, but mortgage rates did not follow. Instead, they moved higher, settling near 6.28% for well-qualified borrowers. Here is why that happened.
After the rate cut, investors expected borrowing costs to drop. Inflation numbers looked good and optimism was building. Then Fed Chair Jerome Powell said that another rate cut in December was “not a foregone conclusion, far from it.” Those three words immediately changed the tone on Wall Street. Markets became cautious, and uncertainty pushed mortgage rates up.
The situation is complicated by the ongoing government shutdown, now more than a month long. Critical reports like jobs data and inflation numbers are delayed, leaving the Fed and investors guessing. Without that data, the market loses confidence and rates tend to move sideways or higher.
For homebuyers, the lesson is not to wait for perfect timing. Market reactions can be unpredictable, even after good news. The best opportunities often appear when others are standing still.
Buyers also have more flexibility than they realize. Many are using funds from their 401(k) to help with down payments. There are rules, taxes, and penalties to consider, but it can be a powerful way to turn existing savings into homeownership.
The key is to focus on strategy instead of short-term market noise. Uncertainty will always be part of real estate, but those who act decisively often end up with the best deals.
Featuring:
The information contained is the viewpoint of the presenter(s). Individuals should consult their own financial representative.
Estimated Mortgage Payment is for exemplary purposes only. Contact a licensed loan officer for exact numbers and APR. Additional rates and terms may apply and are subject to change without notice. Loan scenario assumes a purchase price of Zillow's list price and a 10% down payment. Points and fees not included. Property tax, homeowners insurance, mortgage insurance, and HOA fees are approximate and may vary. Other fees may apply. Product displayed is a conventional 30-year fixed rate mortgage using the current average rate as shown on Mortgage News Daily (mortgagenewsdaily.com).
Estimated Qualifying Income assumes a homebuyer has a FICO score above 740, no other credit debt, and a debt-to-income (DTI) ratio of 43%.
For exact numbers and APR or to run a loan scenario based on your own credit and income, contact our office at (858) 259-8700.
Rate Source: Mortgage News Daily. Rates displayed are approximate, subject to change, and do not necessarily reflect rates available to you. MND’s methods involve an objective component based on lenders' raw prices as well as a subjective impression from their network of originators. For more information about how these rates are calculated, visit www.mortgagenewsdaily.com/mortgage-rates/about.
Mortgage News Daily (MND) is a trademark of Brown House Media, Inc. Zillow is a trademark of Zillow, Inc. CrossCountry Mortgage has not been authorized, sponsored, or otherwise approved by Brown House Media, Inc. or Zillow, Inc.
Equal Housing Opportunity. All loans subject to underwriting approval. Certain restrictions apply. Call (858) 259-8700 for details. All borrowers must meet minimum credit score, loan-to-value, debt-to-income, and other requirements to qualify for any mortgage program. CrossCountry Mortgage, LLC is an FHA Approved Lending Institution and is not acting on behalf of or at the direction of HUD/FHA or the federal government. CrossCountry Mortgage, LLC is not affiliated with or acting on behalf of or at the direction of the Veteran Affairs Office or any government agency. Certificate of Eligibility required for VA loans. By refinancing, the existing loan total finance charges may be higher over the life of the loan.
