Behind the Headlines: Fed Rate Cut vs. Mortgage Rates!

Good morning and happy Saturday!

Here’s a quick market snapshot for you:

Fed cut rates by 0.25% as expected — but mortgage rates actually moved about 0.25% higher afterward. The reason? Markets didn’t love the Fed hinting at just one cut in 2026. More cuts are still likely this year, but now we wait on fresh economic data.

• Current average mortgage rates:
 – Conventional: 6.0%–6.125%
 – Jumbo: 6.375%–6.5%
 – VA: 5.625%–5.875%
 – FHA: 5.875%–5.99%

• After a two-day jump, rates are holding steady. That’s a win even if they’re still at two-week highs, they remain among the best levels of the past 11 months.

• Mortgage applications just had their biggest jump since 2021. Refinance demand surged 58% in a week, and purchase activity is near its strongest since early 2023.

• Builder confidence is still flat, but sales expectations for the next six months are ticking up.

Bottom line: Don’t confuse the Fed rate cut with mortgage rates. They move for different reasons, and right now all eyes are on October’s economic data to see what’s next.

For those ready to sell, it is advisable to partner with a seasoned real estate professional who understands the nuances of the local market and can tailor strategies to meet unique selling needs. Michele Lafortune and the team at Realty Texas are adept at navigating these market nuances and can offer invaluable guidance throughout the selling process.

When you’re considering selling your home in Austin or the surrounding areas, now is the time to take action. Explore the possibilities with a trusted professional at your side. For more information, visit Michele Lafortune, REALTOR® at Realty Texas and get started on your real estate journey today.