"Mortgage interest rates went down before the Fed cut rates in September but went up after," says Ali Wolf, chief economist at NewHomeSource. "This is because the Fed is cutting the federal funds rate, which is a short-term interest rate. Mortgage interest rates, on the other hand, are influenced by investors and the yield on the 10-year Treasury."

Better reports that Fed rate cuts can influence mortgage rates, but unpredictably; housing buyers should focus on personal finances for better rates.

An unexpected jump in the unemployment rate Tuesday kept pressure on the Federal Reserve to rescue the job market by cutting interest rates.

The average long-term mortgage rate dipped to 6.15% from 6.18% last week, mortgage buyer Freddie Mac said Wednesday. That’s the lowest average long-term rate since October 3, 2024 when it dipped to 6.12% before shooting back up. One year ago, the rate averaged 6.91%.

If you're planning to borrow from your home's equity, it's important to know what could be coming for rates soon.

Learn how a potential Fed rate cut could impact your savings rate, what counts as a competitive return, and how to secure strong yields as rates drift lower.

If the Fed does not cut rates, the yield spread between Realty and money market funds could narrow. Finally, if the longer end of the curve sees rates increase due to economic uncertainty — Realty funding costs could increase over time as debt needs to be rolled over. Increased funding costs would also constrain new investments.