Hoping for lower mortgage rates? Don't hold your breath

When the Federal Reserve cut interest rates this week, some might have hoped that mortgage rates would follow. But contrary to popular belief, mortgage rates track movements in the long-term 10-year Treasury yield, rather than the federal funds rate. The central bank’s third-straight cut of 2025 lowered the target range for the federal funds rate to 3.5%-3.75%. The Fed's decision was driven mostly by a weakening jobs market. But the Fed also made it clear that further rate cuts are on pause, projecting on ...