10/30/2025
Good Info Regarding Mortgage Rates. Some people are being mislead.
If you want transparency on what mortgage rates are actually doing reach out 801-419-4773 or visit JustCallCaleb.com
Considering the below information, we do have some pricing incentives from some of our lenders currently that are going away tomorrow, Friday at 10 PM. If you are in the market to purchase or refinance, it might be worth reaching out to me, but it would have to be today.
The Fed rate does not directly impact mortgage rates. It was at one point a good indicator but it seems the past 3-4 years it hasn’t been.
Let’s break down why mortgage rates went up even though the Fed just dropped theirs.
When the Federal Reserve moves rates, that’s the rate big institutions lend to each other, think of it as the “money of the wealthy.”
If the Fed drops rates to 3.75–4%, companies like American Express or major banks borrow at that rate, then turn around and lend to consumers at 10% or more. That part’s simple, they add their margin.
But mortgage rates didn’t drop because of something Jerome Powell said about quantitative tightening.
Starting December 1st, the Fed will stop quantitative tightening, meaning they’ll stop pulling money out of the system, but they’re not putting new money in yet either.
Here’s the easy way to picture it:
The economy is a swimming pool. When the Fed does quantitative easing, they’re filling it up, more money in the system. When they do tightening, they’re draining some out.
Now, they’ve stopped draining, but they’re not refilling yet
So investors are waiting to see what happens before jumping back into the bond market.
That hesitation means fewer bond buyers, lower bond prices, and higher yields, and that’s what keeps mortgage rates elevated, even after a Fed rate cut.
