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** How the Fed’s Recent Rate Cut Affects Mortgage Rates**

On September 18, 2024, the Federal Reserve lowered the federal funds rate by 50 basis points, the first positive news for interest rates in over two years. This cut impacts short-term borrowing costs like credit cards and car loans but indirectly affects mortgage rates.

Historically, rate cuts can increase inflation, leading to higher mortgage rates, but the Fed’s current outlook suggests inflation is under control.

The Fed’s projections signal additional rate cuts for 2025, which could push mortgage rates lower.

In summary, while future cuts may be smaller, mortgage rates are expected to trend downward, though not in a straight line.

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