When the Federal Reserve hinted back in August that they would likely cut short-term interest rates, many people expected mortgage rates to follow and drop as well.

But here’s the twist: long-term mortgage rates had already started improving weeks before the Fed even made its move.

Think of It Like Apple Announcing a New iPhone

When Apple announces they’re launching a new iPhone, their stock often starts going up before the phone is even released. Why? Because the market moves based on expectations, not just actions.

The same is true with mortgage rates.

What Happened at the September 18 Fed Meeting?

On September 18th, the Fed did exactly what they signaled — they lowered short-term rates by 0.25%.
But guess what? Long-term mortgage rates actually went up right after the announcement.

Why? Because it’s not the rate cut itself that moves the mortgage market. It’s what is said — especially during the Q&A session at the end of the Fed meeting. In this case, the Fed’s tone made it clear that future cuts might not come as quickly or deeply as some hoped. As a result, bond yields rose, and mortgage rates ticked higher.

This Has Happened Before — And Will Happen Again

This kind of disconnect between Fed decisions and mortgage rates happened twice last year. In both cases, we had clients who took our advice and locked in great rates while they were available.

Unfortunately, many others waited, thinking rates would continue to drop — and missed out.

What You Need to Know as a Buyer or Homeowner

As a Certified Mortgage Advisor, I use advanced tools to track the bond market, inflation data, and Fed communications. This gives me the insight to know when it’s time to lock a rate — even if the Fed hasn’t acted yet.

Here’s the truth:

  • If rates drop in the future, we can refinance you later
  • But if you’re seeing a lower payment today, it’s smart to act now
  • Waiting based on headlines can cost you real savings

Let Me Help You Make the Right Move

Buying a home or refinancing is about timing and strategy. I’m here to guide you, educate you, and help you take advantage of the market when the opportunity is right.

If you have questions or want to know whether now is the right time to act — let’s talk.

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