When the Federal Reserve announces a rate cut, many people assume mortgage rates will drop, making homeownership more affordable. But lately, that hasn’t been the case. If you’ve been wondering why, you’re not alone. Let’s break it down.The Fed’s Role: Short-Term vs. Long-Term RatesThe Federal Reserve controls the federal funds rate, which is the interest rate banks charge each other for overnight loans. This influences short-term rates, such as those ...

What the Federal Reserve's Decision to Cut Interest Rates by 50 Basis Points Means for Consumers and the Housing MarketThe Federal Reserve, commonly referred to as "the Fed," plays a critical role in managing the U.S. economy. One of their key tools for doing this is adjusting interest rates. When you hear that the Fed has decided to "cut interest rates by 50 basis points," it means they've reduced the ...