09/18/2025
The Federal Reserve announced a long-anticipated rate cut today, lowering the benchmark interest rate to a range of 4%-4.25%, a decrease of a quarter-percentage point. It was the first rate cut in nine months, and the Fed indicated additional cuts could be coming later this year.
A Federal Reserve rate cut often leads to a decrease in mortgage rates, though the actual impact can be influenced by other market conditions, such as the labor market and inflation.
More favorable lending conditions could renew the enthusiasm of prospective homebuyers who’ve been sitting on the sidelines, waiting for a decrease in mortgage rates.
