Your Money Minute Fed Cut Rates, Mortgage Rates Went UP 9/22/25
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Sep 22, 2025 Explore the surprising impact of recent Fed rate cuts on mortgage rates! Discover how rates have dropped to a three-year low but still face upward pressure due to Treasury movements. Learn practical tips to snag lower rates and the innovative strategies builders are using to attract buyers despite a surplus of new homes. Get ready to rethink your mortgage strategy with these insights!
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Rates Fell Then Rose After Fed Cut
- Mortgage rates hit their lowest in three years at about 6.13% before the Fed cut.
- After the Fed cut, mortgage rates rose toward 6.4% by Friday, showing short-term moves can reverse quickly.
Mortgages Track 10-Year Treasuries
- Mortgage rates are long-term and loosely follow the 10-year Treasury, not the Fed's short-term rate.
- That mismatch explains why a Fed action can coincide with rising mortgage costs.
Actions To Improve Your Mortgage Rate
- Get your credit score as high as possible and save a larger down payment to increase your chance of a low mortgage rate.
- Choose a shorter loan term and maintain stable employment and salary to secure better lender terms.