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Fed Set to Cut Rates: Mortgage Relief Ahead?

10/19/2025

42 3 Full Breakdown

Summary

Story summary

The Federal Reserve is expected to cut the federal funds rate by 25 basis points on October 29, with 99% likelihood per CME Group's FedWatch tool.
The move would set the target range at 3.75%-4.00%.
Mortgage rates may decline before the meeting due to the 10-year Treasury yield.
Historically, mortgage rates have fallen ahead of Fed announcements.
Sellers remain hesitant to list homes amid low inventory and rate volatility.

History

Historical Context

The Federal Reserve's decision to cut the federal funds rate to near-zero in December 2008 was a response to the 2008 financial crisis, marked by an 8.5% unemployment rate and a collapsing housing market. This crisis stemmed from excessive speculation and predatory lending, leading to a significant economic downturn. Today's anticipated rate cut reflects ongoing economic pressures affecting the housing market.

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Story summary

The Federal Reserve is expected to cut the federal funds rate by 25 basis points on October 29, with 99% likelihood per CME Group's FedWatch tool.
The move would set the target range at 3.75%-4.00%.
Mortgage rates may decline before the meeting due to the 10-year Treasury yield.
Historically, mortgage rates have fallen ahead of Fed announcements.
Sellers remain hesitant to list homes amid low inventory and rate volatility.

1 / 2