19/09/2025
Weekly Market Update: Rates & Loan Limits
Despite the Fed cutting rates last week, mortgage rates actually moved higher—which confused many borrowers.
Fed Funds Rate ≠ Mortgage Rates
The Fed Funds Rate changes only 8 times a year on Fed meeting days.
Mortgage rates move daily, often hourly, based on bond markets and economic data.
Timing Matters
Mortgage rates had already fallen ahead of Fed day in anticipation of the weaker economic data.
By the time the Fed cut rates, mortgage bonds had already priced it in—leaving room for a rebound higher.
Media Confusion
Freddie Mac’s weekly survey showed an average rate of 6.26%, but it captured mostly pre-Fed cut data (when rates were at their lowest in 11 months).
By mid-week, rates had spiked higher, creating a misleading impression in news reports.
📌 Bottom Line
Mortgage rates are still at their lowest levels in nearly a year if we exclude the sharp jump that followed the Fed’s decision. However, they are unequivocally higher now than they were in the days leading up to the Fed meeting.
If you are interested in refinancing options or purchasing a home, let’s talk!
