People hear RATE CUT and think mortgage rates will instantly drop. That’s a myth.

The Fed controls short-term borrowing between banks, not 30-year home loans.

Mortgage rates are driven by long-term bond yields, inflation expectations, and investor confidence. If inflation stays stubborn or debt levels keep rising, lenders demand higher returns—so mortgage rates remain high.

There’s also the expectation game. Markets price in Fed moves far ahead of time. When a cut finally happens, it’s often already baked in. If investors expected more aggressive cuts and didn’t get them, long-term rates can actually move higher.

And remember why cuts happen. The Fed usually eases because the economy is slowing. That increases concerns about job losses and loan defaults, pushing lenders to stay cautious instead of lowering rates.

Simple truth: a Fed rate cut helps banks’ short-term funding, not your 30-year mortgage. Real relief for buyers comes only when inflation falls and long-term yields drop.