The Federal Reserve finally cut the Fed Funds Rate by 0.25% on September 17, 2025 – the first cut in more than four years. While that rate affects how banks lend to each other, it doesn’t directly control mortgage rates. Still, the move had been widely anticipated across the real estate and mortgage world.

  • Just a quick reminder: These articles I share here are researched and written by me! As part of my commitment to ongoing support for my clients and partners, I write these articles to help them understand what’s really happening in the markets, beyond the headlines and soundbites.

In the weeks leading up to the announcement, mortgage rates were already drifting lower – a common trend since markets tend to move ahead of the Fed. But since the cut, rates have inched back up.

Why? Comments from Fed Chair Jerome Powell hinted that inflation remains sticky:

“Near-term risks to inflation are tilted to the upside…”
“We expect goods prices to rise through the rest of 2025 and into 2026.”

Those remarks made investors less confident that more cuts are coming anytime soon.

A Silver Lining

Because the federal government is shut down, the Bureau of Labor Statistics hasn’t released its usual jobs data. But private payroll data from ADP showed the economy lost 3,000 jobs in August and 32,000 in September. That weakening labor trend could nudge the Fed toward additional cuts later this year.

The Bottom Line

If you’re thinking about buying, there’s little benefit to waiting for rates to fall. Even small drops tend to pull more buyers off the sidelines – which pushes prices higher.

And if you bought your home anytime in the past three years, refinancing should absolutely be on your radar.

Wrapping It Up

We’ll keep watching labor and inflation data closely – because that’s what really drives mortgage rates. Just remember: when the Fed cuts or raises rates, mortgage rates don’t always follow. They move based on what investors think will happen next, not what the Fed does today.

So don’t get caught up in headlines or barstool advice. Mortgage rates play by their own rules – and as always, I’ll help you make sense of what actually matters.

  • If you find this interesting or helpful, please feel free to share it with a friend, family member, or co-worker – it’s my goal to educate and empower as many people as possible during this incredibly unique time in housing!

Here is how I can help!

– If you are looking to purchase a new home or have questions about your mortgage, the market, getting preapproved, etc., or

– If you are a Realtor Broker, or Financial Services Professional looking for a lender with great financing solutions to help educate your clients on the state of the market to help them feel good about their decisions,

Please call today – I am happy to help however I can!

I am a twenty-year veteran of the mortgage and real estate industry. My experience across nearly all aspects of real estate makes me an incredibly well-rounded problem-solver. My clients are treated to a white-glove client experience every single time. Education, information, and communication are the cornerstones of my approach.

248.956.0445 brian@goforwardmortgage.com
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