What Recent CPI Tells Us About Inflation

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!

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