in fact, mortgage rates in the US have been on a downtrend for a while - way before the rate cut the markets have also gradually priced-in the September for a while, as you could observe in FedFunds futures current area is also a monthly support, upwards pressure is expected

Illya Gerasymchuk 2025-09-19 20:42

reducing the cost of capital by 25bps wouldn't affect mortgage that much - as it doesn't eliminate the existing risk in the market (i.e. existing mortgages) to lower mortgage rates the Fed will likely do a mortgage-targeted QE, like with MBS in 2008 QE1