What the Fed’s Rate Cut Really Means for Homebuyers

Written by Gillian Gooch • September 18, 2025

Yesterday, the Federal Reserve announced a 0.25% rate cut. Headlines like this always get people talking, and for many, the first thought is: “Does this mean mortgage rates dropped too?”

Here’s what’s important to know: the Fed’s move doesn’t directly set mortgage rates.

• Fed cuts impact short-term borrowing — things like credit cards, auto loans, and home equity lines of credit.

• Mortgage rates are different. They respond to broader economic factors, including inflation, investor demand, and overall market conditions.

Even though the Fed doesn’t control mortgage rates, their actions can influence the direction rates take in the weeks ahead. That’s why it’s worth paying attention, but also why it’s wise not to hang your whole decision on a headline.

And here’s the bigger question I hear often: “Should I wait for rates to drop more before I buy?”

The truth is, waiting comes with risks. When rates dip, buyer demand usually increases — and that pushes home prices higher. You might save a little on your rate, but end up paying more for the home itself. Remember, you can refinance later if rates move down again, but you can’t go back and change the purchase price you lock in today.

At the end of the day, buying a home isn’t just about chasing the lowest number. It’s about finding the right place for your family, in God’s timing, and building a foundation for your future.

If you’ve been praying about when to take the next step, yesterday’s Fed news may be a nudge to explore your options — not to wait on the sidelines.

In faith and service,
Gillian Gooch, Realtor®
Gillian Gooch Properties.