Understanding the Recent Fed Rate Cut and Mortgage Interest Rates

The Fed just slashed the Fed funds rate by 50 basis points. What does that mean? Are mortgages now cheaper? I'm recording this video because I've got so many calls, so many text messages, so many people reaching out to me across socials, be it Instagram, or TikTok, or Facebook, or my YouTube channel. I've been talking about how the mortgage interest rates coming down over the last four months is all in anticipation of all these rate cuts. So it's already baked into mortgage interest rates. Here's a live look right now. 12 basis points, and it's a red, meaning worse. Mortgage rates are down today on Wednesday, September 18th. Right now, it is 12.30-ish. So the Fed announced 50 basis point cut at 11 o'clock. At 11.30, Jerome Powell came out and gave a little press conference talking about maximum employment, stable prices, dual mandate, and employment's at 4.2, inflation's on its way to 2%, yaddy, yaddy, yaddy. What you need to know as a consumer, especially if somebody who's looking at mortgages, you're thinking about a refinance, you're thinking about purchase, all of these cuts, especially this month's Novembers and Decembers, have already been priced in to mortgage interest rates. This is the chart from the last four months. Green means better rates, red means worse. Upward trajectory that we've seen means better for mortgage rates. So starting in mid, is it June or July? June. We've got the normal ups and downs that we get in the mortgage market, but the trajectory is better rates, better rates, better rates. Back here, a primary was 7.5%. As of September 10th, and this last seven, eight day run, they're flat, they're at about 6.25%. Today's Fed meeting did not lower mortgage interest rates. So if you're thinking about some sort of mortgage, refinance, or purchase, just know that, yes, rates have gotten better over the last four months. No rates didn't get better today. Will they get better tomorrow or the next day? Probably not, we're probably gonna stay flat. That'll be a good thing. Over the next few months, they're probably gonna stay flat or maybe get a little bit better. It'll depend. More economic data comes out. Inflation misses a target, unemployment misses a target. That affects mortgage rates up or down. But 50 basis points today, 25 or 50 in November, 25 or 50 in December, it's already baked in. It's already here. We already have that accounted for because we know it's coming. So hopefully this was educational and helpful. As always, reach out to me. I'm happy to help. That's what I'm here for. That's why you call me instead of seeing what's going on, sensationalized news stories, and things are just meant to make you click. Thanks for watching. Talk to you soon, bye-bye.