The Fed Cut Rates....So Why Are Mortgage Rates Higher?

Hello everyone! It feels like every week brings a new headline that could shift the housing market. I’ll keep it real and break down what these changes actually mean for our industry and how you can use them to your advantage.

Lets dive in!

Read time: ~4 minutes

Rates ended HIGHER compared to last week, and volatility was HIGH. Rates are in the mid 6’s for most loan types without paying discount points. Paying discount points can get you in the high 5’s to low 6’s.

The Fed Cut Rates….So Why Are Mortgage Rates Higher?

Jerome Powell cut the federal funds rate by a quarter point on Wednesday, exactly as the market expected. Most people hear that and think: “Sweet, mortgage rates are going lower.” Except that’s not how it played out—30-year mortgage rates actually ticked up.

This isn’t new….

We saw something similar in September 2024. Back then, the Fed cut rates, but the economic reports that followed came in way too hot, driving long-term yields (and mortgage rates) sharply higher.

Fast-forward to now: Powell’s tone at the press conference leaned more hawkish, and less dovish. He stressed that future cuts depend on hard evidence that inflation is cooling and job growth is slowing. That tougher message sent bond traders running, selling off Treasuries and driving up the 10-year yield—which mortgage rates closely follow.

The difference this time is that inflation has come down more than it had a year ago, and the economy isn’t running as hot. The labor market is clearly softer in 2025. Still, if the data surprises to the upside, we could once again see fewer cuts priced in and mortgage rates staying higher than anyone would like.

🏠 Trump’s $100K Visa Fee Could Reshape Housing Demand

The H-1B visa program brings in top global talent—the kind of workers who fill vital roles and often buy homes in the process. But President Trump’s new proclamation adds a $100,000 fee to most new H-1B applications filed abroad, aiming to slow foreign hiring and steer companies toward U.S. workers. Current visa holders and “national interest” cases are mostly excluded.

Here’s the housing angle:

• Fewer incoming H-1B workers could cool demand in tech-heavy markets where they typically buy

• Homebuilders might scale back if they expect lower demand in certain regions.

• Buyers could see less competition in some areas, though the effect will vary by market.

On the flip side, the intent is to open more opportunities for U.S. citizens. Stronger wages and steadier employment could help more Americans qualify for mortgages and keep demand fueled at home.

Do You have Listing That Has Been Sitting on The Market- Have you Tried a Reverse Offer?

Got a listing that’s been sitting a little too long? One tactic I don’t see used nearly enough is the reverse offer. Instead of waiting around for a buyer to make the first move, your seller can flip the script and send an offer directly to a potential buyer.

This strategy can help spark urgency and test sharper pricing or concessions- without broadcasting a public price drop. You can layer in credits, rate buydowns, or even perks that address buyer concerns head-on.

The best part? Reverse offers aren’t just a “Hail Mary” when things get stale. They’re a proactive way to show sellers you’re working every angle and to create momentum in the market.

If you want a copy of the Reverse Offer Playbook- Just click the link below!

Download the Reverse Offer Playbook

Two Ways My Team & I Can Help

1. Lets collaborate- Schedule a zoom meeting

2. Tough Deal? Let us know if we can help