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The Fed cuts rates, and mortgage rates go up. Then they do it again, and rates…go back up. How does this keep happening? Has the Fed lost complete control over mortgage rates?
The Fed has now cut rates twice in 2025, and we’re hovering around the same (if not slightly higher) mortgage rates as before the first cut. After last week’s rate cut announcement, investors were surprised to see that mortgages—once again—got even more expensive. But it’s not because of what the Fed did—it was because of what they said, potentially foreshadowing a slower, longer path back to 5% mortgage rates.
Dave is on to explain why mortgage rates moved in the opposite direction, why we could be stuck with higher mortgage rates for longer, and the two things that need to happen for mortgage rates to break back into the 5% range. Plus, he’ll share three realistic scenarios that could cause rates to move in different directions and what could trigger each.
In This Episode We Cover
The Fed meeting announcement explained and why mortgage rates went up
The real reason why we’re not seeing mortgage rates fall below 6%
Alarming corporate layoffs and whether this is a warning sign for the entire economy
Some good/bad news about inflation and the cities that are faring the worst
Three likely mortgage rate scenarios that could send rates in different directions, without the Fed making moves
And So Much More!
Links from the Show
Join the Future of Real Estate Investing with Fundrise
Join BiggerPockets for FREE
Grab Dave’s Book, Real Estate by the Numbers
Sign Up for the On the Market Newsletter
Find an Investor-Friendly Agent in Your Area
BiggerPockets Real Estate 1194 - Don’t Bet on the Fed: What Investors Need to Do Now as Rates Rise Again
Find Investor-Friendly Lenders
Property Manager Finder
Dave's BiggerPockets Profile
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-370
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