Marketplace Morning Report Mortgage rates already have a Fed rate cut baked in
Sep 17, 2025
Mortgage interest rates may not drop despite a Federal Reserve rate cut, as they have already decreased in anticipation. Recent trends show a decline in home prices in states like Texas and Florida, but rising home insurance costs threaten buyers. In tech news, Microsoft makes a hefty investment in the U.K.'s AI industry, paving the way for economic growth. Additionally, the energy sector is evolving with a notable reduction in coal usage, leading to improved U.S. emissions and a shift toward renewable sources.
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Mortgage Rates Reflect More Than Fed Cuts
- Mortgage rates reflect many forces beyond the Fed, including the 10-year Treasury yield, supply and demand, and inflation.
- Markets had already started pricing in an expected Fed cut, so mortgage rates fell before the Fed announced it.
Markets Price In Fed Moves Ahead Of Time
- Mortgage rates won't necessarily fall by the exact size of a Fed cut because markets anticipate policy moves.
- Industry voices noted the 30-year fixed rate had already dropped to its lowest in nearly a year ahead of the Fed decision.
Check Total Monthly Costs Before Buying
- Factor in monthly costs beyond mortgage rates when judging affordability, such as rising home insurance premiums.
- Compare local home-price trends because prices rose in some metros but fell in parts of Texas and Florida.