The Mortgage Files

Nationally syndicated mortgage news and advice from Senior Loan Officer Scott Sheldon.

"Illustration of a human figure representing the Federal Reserve, holding large scissors and cutting a red percentage sign symbolizing an interest rate. Surrounding the figure are individuals representing homeowners, business people, and families reacting in various ways to the rate cut, with a city skyline in the background, featuring banks, homes, and businesses."

“Why Federal Reserve Rate Cuts Don’t Directly Lower Mortgage Rates”

By Scott Sheldon / September 30, 2024

Why Federal Reserve Rate Cuts Don’t Directly Lower Mortgage Rates When the Federal Reserve announces a cut in interest rates, many people immediately assume that mortgage rates will drop as well. Unfortunately, this is a common misconception. When the Fed adjusts its rates—specifically the Federal Funds Rate—it doesn’t directly impact long-term mortgage rates. Instead, these…

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