Fri Nov 08 00:50:00 UTC 2024: ## Fed Cuts Rates Again, But Mortgage Rates Remain Unchanged

**New York, NY** – The Federal Reserve has lowered interest rates for the second time in three months, dropping the federal funds rate by 25 basis points to a range of 4.50% to 4.75%. This move, while welcomed by borrowers struggling with higher debt costs, is unlikely to have a significant impact on mortgage rates, experts say.

Despite the cut, mortgage rates remained largely unchanged this week, as lenders had already factored in the potential reduction. This highlights the complex interplay of factors influencing mortgage rates beyond just Fed actions, including unemployment, inflation, and the 10-year Treasury yield.

While a lower federal funds rate theoretically should drive down mortgage rates, other economic indicators can counteract the effect. This means homebuyers shouldn’t solely rely on Fed decisions when making purchasing decisions, as other market forces are at play.

“It’s a bumpy ride back to the bottom,” says Matt Richardson, managing editor for the Managing Your Money section at CBSNews.com. “While a Fed rate cut can help, it’s often a much more complicated set of factors that push rates along.”

For those looking to secure a low mortgage rate, it may be beneficial to act sooner rather than later, especially if you’ve found your dream home. Refinancing options remain available should rates fall further in the future.

**The Federal Reserve will meet again in December for its final meeting of 2024. If inflation continues to decline, further rate cuts may be on the horizon.**

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