The Federal Reserve has finally cut rates. Will mortgage rates follow? If you’ve been waiting to rate lock or refinance, is now the time, or does the market think we have even further to fall?
With inflation coming down from past years’ peaks and unemployment slowly ticking up, the Fed made the decision everyone was waiting for: cut rates…cautiously. There are still more 2025 rate cuts lined up, but they may not have the effect on mortgage rates that many people think. Many expect mortgage rates could dip into the mid-5% range by late 2025—Dave isn’t so sure.
Today, we’re giving you a full recap of the Fed meeting and their announcement, what current mortgage rates are, and interest rate predictions for the rest of 2025 and into 2026. Plus, Dave shares who should consider rate locking and refinancing right now as mortgage rates have fallen over the past couple of months.
If you missed the Fed meeting, don’t worry, this episode will get you up to speed!
Dave:
The Federal Reserve finally cut rates this week for the first time in nine months. Does that mean we’re about to see lower mortgage rates? That’s the key question that every real estate investor needs to understand, but it’s more complicated than simply saying the fed cut rates. That means mortgage rates are going to go down. So today I’ll break down all the factors that could impact mortgage rates and you’re investing in the near future and it’ll give you my projection for what mortgage rates to expect for the rest of 2025. Hey everyone, welcome to the BiggerPockets podcast. Thank you all so much for being here. It has been a very big week for economic news. Most notably, the Federal Reserve met and made a decision about mortgage rates. So I am going to, in this episode, recap what happened. Also give you my analysis of what it means for mortgage rates, including my take on this Bank of America analysis that we could be on a path to 5% mortgage rates and it’ll give you my thoughts…